As sales manager, Dorothy Taylor was given the following static budget report for selling expenses in the clothing department of Sandhill Company for the month of October. SANDHILL COMPANY Clothing Department Budget Report Month Ended October 31, 2022 Difference Favourable Unfavourable Neither Favourable nor Unfavourable Budget Actual 7.500 10,000 2,500 Favourable $1.950 $2,500 $550 Unfavourable Sales in units Variable costs Sales commissions Advertising expense Travel expense Free samples given out Total variable costs 1,050 900 3,000 4,500 150 Favourable 1.500 Unfavourable 25 Favourable 1.125 1.100 7.125 9,000 1.875 Unfavourable Fixed costs Rent 1.800 1,800 -0. Neither Favourable nor Unfavourable Sales salaries 1.200 1,200 -0- Neither Favourable nor Unfavourable Office salaries 700 700 -O Neither Favourable nor Unfavourable 7,500 10,000 2,500 Favourable $1,950 $2,500 1,050 900 Sales in units Variable costs Sales commissions Advertising expense Travel expense Free samples given out Total variable costs Fixed costs 3,000 4,500 $550 Unfavourable 150 Favourable 1,500 Unfavourable 25 Favourable 1,875 Unfavourable 1,125 1.100 7.125 9,000 Rent 1.800 1.800 Sales salaries 1,200 1.200 700 700 Office salaries Depreciation-vehicles (sales staff) Totalfixed costs -O- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable $1.875 Unfavourable 600 600 4,300 4,300 Total costs $11,425 $13,300 As a result of this budget report, Dorothy was called into the president's office and congratulated on her fine sales performance She was reprimanded, however, for allowing her costs to get out of control. Kajsa knew something was wrong with the performance report that 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 Dorothy (List variable costs before fixed costs.) SANDHILL COMPANY Selling Expense Flexible Budget Report Clothing Department Budget Actual I TIIMI NIE LUNE INICI TOTO (b) Should Dorothy have been reprimanded? Dorothy have been reprimanded