During the Middle of the Fiscal Year, AWR Corporation Unexpectedly

Multiple Choice

During the middle of the fiscal year, AWR Corporation 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