Webster has the following budgeted costs as its anticipated production level (expressed in hours): variable cost $150,000; fixed cost $240,000. If webster now revises its anticipated production upward, it would expect:
A. total fixed cost of $240,000; and a lower hourly rate for variable cost
B. total fixed cost of $240,000; and the same hourly rate for variable cost
C. total fixed cost of $240,000; and a higher hourly rate for variable cost
D. total variable cost of more than $150,000; and the same hourly rate for fixed cost
Answer: B
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