During the Middle of the Fiscal Year, AWR Unexpectedly Revised

question 64

Multiple Choice

During the middle of the fiscal year, AWR unexpectedly revised its estimate of a plant asset's life from 5 years to 7 years. That revision is most likely to lead to

• A) No variance, since the plant asset's cost is sunk
• B) Fixed overhead spending variance
• C) Fixed overhead production volume variance
• D) Variable overhead spending variance