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		4,400			400	F
Variable expenses
Sales commissions		$128,000		$134,200			$6,200	U
Advertising expense		40,000		42,600			2,600	U
Travel expense		196,000		210,000			14,000	U
Demonstration models given out		92,000		79,600			12,400	F
Total variable		456,000		466,400			10,400	U
Fixed expenses
Rent		7,400		7,400			-0-
Sales salaries		60,400		60,400			-0-
Office salaries		40,100		40,100			-0-
Depreciation vans (sales staff)		2,300		2,700	*		400	U
Total fixed		110,200		110,600			400	U
Total expenses		$566,200		$577,000			$10,800	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.

Neither Favorable Per Unit Budget Actual nor Unfavorable Sales in Units 4,000 4400 Variable Expenses $ $ 140800 $ Favorable Sales Commissions Advertising Expense 4 32 $ 0 128000 40000 140800 44000 134200 42600 Favorable Favorable 1 40000 Travel Expense 196000 215600 210000 Favorable Free Demonstration Models 92000 101200 79600 Favorable Total Variable 456000 501600 466400 Favorable Fixed Expenses Rent 7400 7400 7400 Unfavorable Sales Salaries 60400 60400 60400 Unfavorable Office Salaries 40100 40100 40100 Unfavorable Depreciation - Auto (Sales Staff) 2,300 2,700 2,700 Unfavorable Total Fixed 110,200 110,600 110,600 Unfavorable Total Expenses 566,200 612,200 577,000 Neither Favorable nor Unfavorable Neither Favorable Per Unit Budget Actual nor Unfavorable Sales in Units 4,000 4400 Variable Expenses $ $ 140800 $ Favorable Sales Commissions Advertising Expense 4 32 $ 0 128000 40000 140800 44000 134200 42600 Favorable Favorable 1 40000 Travel Expense 196000 215600 210000 Favorable Free Demonstration Models 92000 101200 79600 Favorable Total Variable 456000 501600 466400 Favorable Fixed Expenses Rent 7400 7400 7400 Unfavorable Sales Salaries 60400 60400 60400 Unfavorable Office Salaries 40100 40100 40100 Unfavorable Depreciation - Auto (Sales Staff) 2,300 2,700 2,700 Unfavorable Total Fixed 110,200 110,600 110,600 Unfavorable Total Expenses 566,200 612,200 577,000 Neither Favorable nor Unfavorable