Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A New Auditors Guide To Planning Performing And Presenting IT Audits

Authors: Nelson Gibb, CIA, CISA, CISSP, Divakar Jain, CA, CPA, Amitesh Joshi, Surekha Muddamsetti, Sarabjot Singh

1st Edition

0894136852, 978-0894136856

More Books

Students also viewed these Accounting questions

Question

What is the probability of a judge having had 10 or more rulings?

Answered: 1 week ago

Question

5. Describe how contexts affect listening

Answered: 1 week ago