1) Sales Commission 2) Advertising Expense Variance The company usually prepares flexible budgets at incremental level of 1,100 units after it had Teached it's target of 5,700 units each month, in prior months. The next level of flexible budget that the company can prepare is at 0,000 units, 10,100 units and 11.200 units. The 11,200 units closely matches John's actual units sold. Since this is an internal management report specifically being prepared to evaluate John's performance, the company is open to change it's policy and has asked you to prepare a flexible budget that exactly matches units sold by John 3) Travel Expense Variance 4) Free Samples given out Drag and Drop correct choices after you have prepared a Flexible Budget. Hint: Prepare select the correct answers. 5) Is Sales Commission variance favorable, unfavorable or N/A 6) Is Travel Expense variance favorable, unfavorable or N/A 1 7) Should John have been reprimanded Instructions: Calculate the following at flexible budget: 1) Sales Commissions 2) Advertising Expense Variance 3) Travel Expense Variance 4) Free Samples given out. 5) Is Sales Commission variance favorable or unfavorable? 6) Is Travel Expense variance favorable or unfavorable? 7) Should John have been reprimanded? ABCDEFGHOUKEMNOPQR 1. Sales Commission . 2,640 B 2.688 2,460 D. 2,424 As sales manager, John was given the following static budget report in the coming department of BLAC Odober Advertising Expense Variance. BLACKPOOL COMPANY 1,540 770 Clothing Department Static Budget Report -870 Month Ended October 31, 2020 1,500 Actual Budget Variance U. FONA Sales in Units 11,000 7.900 Favourable vel Expense Vrance 3,100 4.700 Variable Costs 770 2.700 Sales commissions $2,970 $1,896 Unfavourable 1,074 440 Advertising expense 770 1,106 Favourable 336 4. Free Samples given out. 3,850 3,318 Unfavourable M 1.515 532 N 1,650 Free samples given out 1.210 1,185 Unfavourable 1,875 25 P. 1,680 Total variable costs 8,800 7,505 Unfavourable 1,295 Travel expense Fixed costs Rent 1,200 1,200 O NA 5. Is Sales Commission variance favorable, unfavorable or N/A? Unfavorable R N/A S Favorable Sales salaries 1.000 1,000 N/A Office salaries 700 700 Depreciation - vehicles 6. Is Travel Expense variance favorable, unfavorable or N/A? T Unfavorable U N/A 400 400 Total fixed costs 3,300 V Favorable 3,300 NA 7. Should John have been reprimanded? W Yes Total costs $12,100 $10,805 Unfavourable 1,295 As a result of this report, John was called into the president's office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. John was not sure what to do and has come to you for advice whether he should have been reprimanded. X It depends Y Not Sure Z No