As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2017 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable 8,300 11,000 2,700 Favorable Sales in units Variable expenses $1,992 $2,860 $868 Unfavorable Sales commissions 830 1,210 380 Unfavorable Advertising expense Travel expense 3,320 3,850 530 Unfavorable 1,992 1,430 562 Favorable Free samples given out Total variable 8,134 9,350 1,216 Unfavorable Fixed expenses 1,100 1,100 0- Neither Favorable nor Unfavorable Rent 200 1,200 0- Neither Favorable nor Unfavorable Sales salaries Office salaries 900 9000 0- Neither Favorable nor Unfavorable Depreciation (sales staff) 400 400 0- Neither Favorable nor Unfavorable Total fixed 3,600 3,600 0- Neither Favorable nor Unfavorable $11,734 12,950 $1,216 Unfavorable Total expenses As a result of this budget report, Joe 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. 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