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 nor Unfavorable Budget Actual Sales in units 8,400 9,000 600 Favorable Variable expenses Sales commissions Advertising expense Travel expense Free samples given out $2,352 $2,160 $192 Favorable 720 288 Favorable 96 Favorable 1,008 3,696 3,600 1,5121,080 432 Favorable 8,5687,560 1,008 Favorable Total variable Fixed expenses Rent Sales salaries Office salaries -0- Neither Favorable nor Unfavorable 200 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 400400-0 Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable 1,1001,100 1,2001, 700 700 3,400 3,400 $11,968 $10,960 $1,008 Favorable Total fixed 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