Ralston Has the Following Budgeted Costs at Its Anticipated Production

question 39

Multiple Choice

Ralston has the following budgeted costs at its anticipated production level (expressed in hours) : variable overhead, $165,000; fixed overhead, $250,000. If Ralston now revises its anticipated production slightly upward, it would expect:

• A) total fixed overhead of $250,000 and a lower hourly rate for variable overhead.
• B) total fixed overhead of $250,000 and the same hourly rate for variable overhead.
• C) total fixed overhead of $250,000 and a higher hourly rate for variable overhead.
• D) total variable overhead of less than $165,000 and a lower hourly rate for variable overhead.
• E) total variable overhead of less than $165,000 and a higher hourly rate for variable overhead.

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Definitions:

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