As sales manager, Elizabeth Brown was given the following static budget report for selling expenses in the clothing department of Oriole Company for the month of October. ORIOLE COMPANY Clothing Department Budget Report Difference Favourable Unfavourable Neither Favourable nor Unfavourable Budget Actual Sales in units 7,800 10,000 2,200 Favourable Variable costs Sales commissions $2,184 $2,400 $216 Unfavourable Advertising expense 1,092 1,000 92 Favourable Travel expense 3,432 4,500 1,068 Unfavourable Free samples given out 1,560 1,100 460 Favourable Total variable costs 8,268 9,000 732 Unfavourable Fixed costs Rent 1,700 1,700 Sales salaries 1,400 1,400 Office salaries 600 600 -0- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable Depreciation-vehicles (sales staff) 600 600 -0- Neither Favourable nor Unfavourable Total fixed costs 4,300 4,300 Total costs $12,568 $13,300 -0- Neither Favourable nor Unfavourable $732 Unfavourable As a result of this budget report, Elizabeth 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.