Reference no: EM132610246

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 variable overhead efficiency variance for the period, rounded to the nearest dollar?

A) $1,760 unfavourable.

B) $2,075 unfavourable.

C) $2.075 favourable.

D) $0.