Reference no: EM133042860

Question - Fitzwater Limited (an Irish company) has a foreign subsidiary in Norway, whose manager is evaluated on the basis of profit in Euros (EUR). In the current year the foreign subsidiary was budgeted to generate a profit of 500,000 Norwegian kroner (NOK), and as actual profit for the year was NOK 480,000. Fitzwater's corporate management has calculated an unfavorable total budget variance for the foreign subsidiary of EUR 8,560. Current year actual and projected exchange rates are as follows:

Actual at time of budget preparation EURO 0.116 per NOK 1

Projected ending at time of budget preparation EURO 0.105 per NOK 1

Actual at end of budget period EURO 0.103 per NOK 1

Required - Identify the combination of exchange rates used by Fitzwater's corporate management in translating budgeted and actual amount that results in the total budget variance of EUR 8,560.