As sales manager, Hank Short was given the following static budget report for selling expenses in the Winter Sports Department of Jennings Outdoor Company for the month of November Jennings Outdoor Company Winter Sports Department Budget Report For the Month Ended November 30, 2020 Budget 4,100 Actual 4,600 Difference Favorable F Unfavorable U 500 F $123,000 $130,700 36,900 39,700 188,600 206,200 110,700 102,700 459,200 479,300 $7,700U 2,800 V 17,600 U 8,000 F 20,100 U Sales in units Variable expenses Sales commissions Advertising expense Travel expense Demonstration models given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation - vans (sales staff) Total fixed Total expenses 7,100 7,100 59,800 59,800 40,100 40,100 2,500 3,000* 109,500 110,000 $568,700 $589,300 500 U 500 u $20,600 U *The increase in depreciation was due to a new vehicle that had to be purchased as a result of an accident driving on snowy roads on the way to visit a customer, As a result of this budget report, Hank 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. Hank 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 Hank. (Round per unit answers to 2 decimal places, e.g. 15.25.) Jennings Outdoor Company Winter Sports Department Flexible Budget Report For the Month Ended November 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Per Unit Budget Actual Sales in Units 4,600] D 4,600 138000 Variable Expenses Sales Commissions Advertising Expense Travel Expense Free Demonstration Models 41400 130700 39700 206200 102700 211600 124200 515200 1700 5400 21500 35900 Favorable Favorable Favorable Favorable Favorable Total Variable 479300 Fixed Expenses Rent 7100 7100 Neither Favorable nor Unfavorable 59800 59800 i Neither Favorable nor Unfavorable 40100 40100 Sales Salaries Office Salarles Depreciation - Auto (Sales Staff) Total Fixed 2500 3000 Neither Favorable nor Unfavorable Unfavorable Unfavorable Favorable 109500 624700 500 i 500 i 35400 i 110000 589300 Total Expenses eTextbook and Media Prepare a budget report based on flexible budget data. The new depreciation amount has been included in the budgeted fixed costs.(Round per unit answers to 2 decimal places, e.g. 15.25.) Jennings Outdoor Company Winter Sports Department Flexible Budget Report For the Month Ended December 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Per Unit Budget Actual Sales in Units Variable Expenses Sales Commissions Advertising Expense Travel Expense Free Demonstration Models Total Variable Fixed Expenses Rent Sales Salaries Office Salaries Depreciation - Auto (Sales Staff) Total Fixed Total Expenses Do you think the new plan is valid? Explain. It appears that the new plan is a as favorable total variance is by $ than in November e Textbook and Media