9. 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
	Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
Sales in units	8,100		9,000		900	Favorable
Variable expenses
Sales commissions	$1,620		$2,250		$630	Unfavorable
Advertising expense	810		720		90	Favorable
Travel expense	3,888		3,600		288	Favorable
Free samples given out	1,782		990		792	Favorable
Total variable	8,100		7,560		540	Favorable
Fixed expenses
Rent	1,500		1,500		0	Neither Favorable nor Unfavorable
Sales salaries	1,300		1,300		0	Neither Favorable nor Unfavorable
Office salaries	600		600		0	Neither Favorable nor Unfavorable
Depreciationautos (sales staff)	500		500		0	Neither Favorable nor Unfavorable
Total fixed	3,900		3,900		0	Neither Favorable nor Unfavorable
Total expenses	$12,000		$11,460		$540	Favorable

As a result of this budget report, Joe was called into the presidents 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. Prepare a budget report based on flexible budget data to help Joe. (List variable costs before fixed costs.)

SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020

Budget Actual Difference u/f/neither or

Sales in units
Variable expenses
Sales Commissions
Advertising expense
Travel Expense
Free samples
Total Variable exp.
Fixed expenses
Rent
Sales salaries
Office salaries
Depreciation
Total Fixed exp.
Total expenses

Please explain. Thank you!