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\begin{array}{l}\phantom{480)}\phantom{1}\\480\overline{)854}\\\end{array}
Use the 1^{st} digit 8 from dividend 854
\begin{array}{l}\phantom{480)}0\phantom{2}\\480\overline{)854}\\\end{array}
Since 8 is less than 480, use the next digit 5 from dividend 854 and add 0 to the quotient
\begin{array}{l}\phantom{480)}0\phantom{3}\\480\overline{)854}\\\end{array}
Use the 2^{nd} digit 5 from dividend 854
\begin{array}{l}\phantom{480)}00\phantom{4}\\480\overline{)854}\\\end{array}
Since 85 is less than 480, use the next digit 4 from dividend 854 and add 0 to the quotient
\begin{array}{l}\phantom{480)}00\phantom{5}\\480\overline{)854}\\\end{array}
Use the 3^{rd} digit 4 from dividend 854
\begin{array}{l}\phantom{480)}001\phantom{6}\\480\overline{)854}\\\phantom{480)}\underline{\phantom{}480\phantom{}}\\\phantom{480)}374\\\end{array}
Find closest multiple of 480 to 854. We see that 1 \times 480 = 480 is the nearest. Now subtract 480 from 854 to get reminder 374. Add 1 to quotient.
\text{Quotient: }1 \text{Reminder: }374
Since 374 is less than 480, stop the division. The reminder is 374. The topmost line 001 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 1.