During the Middle of the Fiscal Year, Fui Ltd Unexpectedly

question 78

Multiple Choice

During the middle of the fiscal year, Fui Ltd unexpectedly revised its estimate of a plant asset's life from 6 years to 8 years. That revision is most likely to lead to:

• A) Variable overhead spending variance
• B) Fixed overhead spending variance
• C) Fixed overhead production volume variance
• D) Variable overhead efficiency variance

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Definitions:

Intangible Personal Property

Non-physical assets owned by an individual or a business, such as intellectual property, stocks, or bonds.

Intellectual

Relating to the intellect or involving the exercise of the mind, often associated with knowledge and thinking processes.

Ephemeral

Lasting for a very short time; transient.

Real Property

Land and any permanent structures attached to it, such as houses, buildings, and other fixtures, recognized as legal property.