Final answer:
To restate quarterly data applying the overhead rate as a set rate per batch, you multiply the rate by the number of batches. The curve of average fixed costs resembles a hyperbola, decreasing as production goes up, illustrating the 'spreading the overhead' concept.
Step-by-step explanation:
The question relates to calculating the overhead rate per batch. The correct way to restate the quarterly data by applying the overhead rate as a set rate per batch is to multiply the set rate per batch by the total number of batches produced in the quarter. Therefore, the answer is a) Multiply the set rate per batch by the total number of batches produced in the quarter.
Concerning fixed costs, also known as overhead, when you divide fixed cost by the quantity of output produced, you obtain the average fixed cost. If the supposed fixed cost is $1,000, the average fixed cost curve would typically look like a hyperbola, gradually approaching zero as output increases. This visual representation is important to understand what 'spreading the overhead' means, which refers to allocating fixed costs over a larger number of units as production increases, thus reducing the average cost per unit.