2 of 5 View Policies 13 Current Attempt in Progress As sales manager. Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 7.500 11,000 3,500 Favorable Variable expenses Sales commissions $1,000 $3,000 $1.280 Unfavorable Advertising expense 1,050 990 60 Favorable Travel expense 3,300 4.950 1,650 Unfavorable Free samples given out 1,275 1540 265 Unfavorable Total variable 7425 10.560 3.135 Unfavorable Fixed expenses Rent 1,400 1,600 Sales salaries 1.100 1.100 -0 Office salaries 900 900 Depreciation-autos (sales staff) 600 600 -0- Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Total fixed 4.200 4.200 Total expenses $11.625 $14.760 0 Neither Favorable nor Unfavorable $3.135 Unfavorable As a result of this budget report, Joe 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 Joe knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice. 900 100 -0- Neither Favorable nor Unfavorable Depredation-auto (sales staff) 600 600 Total fed 4.200 4.200 -0 Neither Favorable nor Unfavorable -Neither Favorable nor Unfavorable $11.425 $14,760 As a result of this budget report, Joe 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 contral Joe knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice Prepare a budget report based on flexible budget data to help Joe List variable cats before fixed c SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Budget Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable