Reference no: EM13128828
ABC has the following budgeted costs at its anticipated production level (expressed in hours):
Variable overhead $150,000
Fixed overhead $240,000.
If ABC now revises its anticipated production slightly downward, it would expect:
a. total fixed o/head of $240,000 and a lower hourly rate for variable o/head.
b. total fixed o/head of $240,000 and the same hourly rate for variable o/head.
c. total fixed o/head of $240,000 and a higher hourly rate for variable o/head.
d. total variable o/head of less than $150,000 and a lower hourly rate for variable o/head.
e. total variable o/head of less than $150,000 and a higher hourly rate for variable o/head.
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