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1 of 2 < > -/31 E As sales manager, Kajsa Keyser was given the following static budget report for selling expenses in the clothing
1 of 2 < > -/31 E As sales manager, Kajsa Keyser was given the following static budget report for selling expenses in the clothing department of Dunham Company for the month of October. DUNHAM COMPANY Clothing Department Budget Report Month Ended October 31, 2020 Sales in units Difference. Favourable Unfavourable Neither Favourable nor Unfavourable Budget Actual 7,900 11,000 3,100 Favourable Variable costs Sales commissions $2,054 $2,860 $806 Unfavourable: Advertising expense 869 770 99 Favourable Travel expense 3,476 4,950. 1,474 Unfavourable Free samples given out 1,659 1.210 449 Favourable Total variable costs 8,058 9.790 1,732 Unfavourable Question 1 of 2 -/31 Travel expense 3,476 4,950 1,474 Unfavourable Free samples given out 1,659 1,210 449 Favourable Total variable costs 8,058 9,790 1,732 Unfavourable Fixed costs Rent 1,900 1,900 Sales salaries 1,100 1,100 -0- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable Office salaries 800 800 Depreciation-vehicles (sales staff) 600 600 Total fixed costs 4,400 4,400 Total costs $12,458 $14,190 -0- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable $1,732 Unfavourable As a result of this budget report. Kajsa was called into the president's office and congratulated on her fine sales performance. She we reprimanded, however, for allowing her costs to get out of control. Kajsa knew something was wrong with the performance report t she had been given. However, she was not sure what to do and has come to you for advice. (a) Prepare a budget report based on flexible budget data to help Kajsa. (List variable costs before fixed costs.)
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