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		Actual			Difference Favorable F Unfavorable U
Sales in units		4,000		4,500			500	F
Variable expenses
Sales commissions		$112,000		$118,600			$6,600	U
Advertising expense		40,000		43,500			3,500	U
Travel expense		184,000		201,600			17,600	U
Demonstration models given out		96,000		86,300			9,700	F
Total variable		432,000		450,000			18,000	U
Fixed expenses
Rent		8,100		8,100			-0-
Sales salaries		59,400		59,400			-0-
Office salaries		40,200		40,200			-0-
Depreciation vans (sales staff)		2,600		3,000	*		400	U
Total fixed		110,300		110,700			400	U
Total expenses		$542,300		$560,700			$18,400	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 presidents 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.

(a)

Prepare a budget report based on flexible budget data to help Hank.