Ralston has the following budgeted costs at its anticipated production level (expressed in hours): variable overhead, $167,700; fixed overhead, $343,000. If Ralston now revises its anticipated production slightly upward, it would expect:

Multiple Choice

• total fixed overhead of $343,000 and the same hourly rate for variable overhead.
• total fixed overhead of $343,000 and a higher hourly rate for variable overhead.
• total variable overhead of less than $167,700 and a higher hourly rate for variable overhead.
• total variable overhead of less than $167,700 and a lower hourly rate for variable overhead.
• total fixed overhead of $343,000 and a lower hourly rate for variable overhead.