Question 23

Reference: 11-15

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

Year 1Year 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.

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

Question 23 options:

A)

$900 favourable.

B)

$452 unfavourable.

C)

$900 unfavourable.

D)

$452 favourable.