If overhead contains fixed costs, what will happen to the predetermined overhead rate if lower unit sales volume is expected?

a. The predetermined overhead rate will likely increase.

b. The predetermined overhead rate would be unaffected.

c. The predetermined overhead rate will likely decrease.

If overhead contains fixed costs, what will happen to product costs computed by the accounting system if lower unit sales volume is expected?

a. Product costs will likely increase.

b. Product costs would be unaffected.

c. Product costs will likely decrease.

If overhead contains fixed costs and management set prices by marking up product costs by a preset percentage, what will happen to selling prices if lower unit sales volume is expected?

a. Selling prices will likely increase.

b. Selling prices would be unaffected.

c. Selling prices will likely decrease.