Ralston has the following budgeted costs at its anticipated production level (expressed in hours): variable overhead, $170,700; fixed overhead, $294,000.
If Ralston now revises its anticipated production slightly upward, it would expect:

A) total fixed overhead of $294,000 and a lower hourly rate for variable overhead.
B) total fixed overhead of $294,000 and the same hourly rate for variable overhead.
C) total fixed overhead of $294,000 and a higher hourly rate for variable overhead.
D) total variable overhead of less than $170,700 and a lower hourly rate for variable overhead.
E) total variable overhead of less than $170,700 and a higher hourly rate for variable overhead.