As sales manager, Hank Short was given the following static budget report for selling expenses in the Winter Sports Department of Waterway Company for the month of November.

Waterway Company

Winter Sports Department

Budget Report

For the Month Ended November $30,2020$

Budget

Actual

Difference

Favorable

Unfavorable

Sales in units

$3,900,4,600,700$

Variable expense:

Sales commissions

$$124,800,$$$140,300,$$$15,500$

Advertising expense

$39,000,44,600$

$5,600$

Travel expense

$191,100,219,800,28,700$

Demonstration models given out

$93,600,88,400,5,200$

Total variable

$448,500,493,100,44,600$

Fixed expenses:

Rent

$8,200,8,200$

Sales salaries

$60,000,60,000$

Office salaries

$39,700,39,700$

Depreciation $-$ vans $($sales staff$)$

$2,400,2,900,500$

Total fixed

$110,300,110,800,500$

Total expenses

$$558,800$$$603,900,$$$45,100$

$*$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.