Reference no: EM132608293

The Baily Division recorded operating data as follows for the past two years:

                                                     Year 1                    Year 2

Sales                                         ?               $1,200,000

Shareholders' Equity                    $540,000       $720,000

Average Operating Assets            $600,000         ?

Margin                                           15%               ?

Return on Investment                        22.5%          18%

Baily Division's turnover was exactly the same in both Year 1 and Year 2.

Problem 1: What was the fixed overhead budget variance for the period, rounded to the nearest dollar?

A) $900 favourable.

B) $452 unfavourable.

C) $900 unfavourable.

D) $452 favourable.