Wooster Has the Following Budgeted Costs at Its Anticipated Production

question 58

Multiple Choice

Wooster has the following budgeted costs at its anticipated production level (expressed in hours) : variable overhead, $165,000; fixed overhead, $250,000. If Wooster 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.

---

Definitions:

Assignment

The transfer of rights, property, or responsibilities from one party to another.

Trustee

A person or organization that holds and administers property or assets for the benefit of a third party under the terms of a trust agreement.

Creditors

Individuals or entities that are owed money or other assets by another entity, known as the debtor.

Surety

A person or entity that takes responsibility for another's performance of an obligation, such as repaying a loan or fulfilling a contract.