As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of SoriaCompany for the month of October.

SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020
					Difference
	Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
Sales in units	8,100		10,000		1,900	Favorable
Variable expenses
Sales commissions	$1,944		$2,700		$756	Unfavorable
Advertising expense	972		700		272	Favorable
Travel expense	3,240		4,000		760	Unfavorable
Free samples given out	1,458		1,400		58	Favorable
Total variable	7,614		8,800		1,186	Unfavorable
Fixed expenses
Rent	1,900		1,900		0	Neither Favorable nor Unfavorable
Sales salaries	1,400		1,400		0	Neither Favorable nor Unfavorable
Office salaries	800		800		0	Neither Favorable nor Unfavorable
Depreciationautos (sales staff)	400		400		0	Neither Favorable nor Unfavorable
Total fixed	4,500		4,500		0	Neither Favorable nor Unfavorable
Total expenses	$12,114		$13,300		$1,186	Unfavorable

As a result of this budget report, Joe 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. Joe 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 Joe. (List variable costs before fixed costs.)

SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020

Budget Actual Sales in Units 10000 Variable Expenses A Sales Commissions $ $ $ Advertising Expense Travel Expense Free Samples Total Variable Expenses Fixed Expenses a Rent 1900 1900 i Sales Salaries a 1400 1400 i Office Salaries 800 800 i Depreciation-Sale Staff Autos 400 400 i Total Fixed Expenses 4500 4500 i Total Expenses $ $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable $ Unfavorable Favorable Unfavorable Favorable Favorable Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable A