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.
Correct Answer:

Verified
Correct Answer:
Verified
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