Attica SA (a Greek company) has a foreign subsidiary in Morocco, 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 1,000,000 Moroccan dirham (MAD), and actual profit for the year was MAD 1,050,000. Prometheuss corporate management has calculated an favorable total budget variance for the foreign subsidiary of EUR 7,650. Current year actual and projected exchange rates are as follows:

Actual exchange rate at time of budget preparation	EUR 0.086 per MAD 1
Projected ending exchange rate at time of budget preparation	EUR 0.090 per MAD 1
Actual exchange rate at end of budget period	EUR 0.093 per MAD 1

Required:

Determine the portion of the total budget variance calculated by Atticas corporate management that is caused by a change in the exchange rate between the EUR and the MAD compared to combination 2- using the projected ending exchange rate at the time the budget is prepared.

Multiple Choice

EUR 3,320

EUR 3,350

EUR 3,000

EUR 3,150