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, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable 7.800 11.000 3,200 Favorable Sales in units Variable expenses Sales commissions Advertising expense Travel expense $1.716 $2,640 1.100 780 $924 Unfavorable 320 Unfavorable 1206 Unfavorable 495.0) Unfavorable Travel expense Free samples given out Total variable 3,744 1,482 4,950 1,210 1,206 272 Favorable 7.722 9,900 2,178 Unfavorable Fixed expenses Rent 1.700 1,700 Sales salaries 1,400 1,400 900 900 Office salaries Depreciation-autos (sales staff) Total fixed -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable 600 600 4,600 4,600 $12,322 Total expenses $14.500 $2,178 Unfavorable 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. 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 11000 11000 Variable Expenses