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 nor Unfavorable Budget Ach Sales in units 8.100 9,000 900 Favorable Variable expenses $ 1,620 $2,250 810 720 Sales commissions Advertising expense Travel expense Free samples given out Total variable $630 Unfavorable 90 Favorable 288 Favorable 3.888 3,600 1.782 990 792 Favorable 8,100 7,560 540 Favorable Fixed expenses 1.500 1,500 Rent Sales salaries 1,300 1,300 Office salaries 600 600 -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 500 500 Total fixed 3.900 3,900 Total expenses $ 12,000 $ 11,460 $ 540 Favorable 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. Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorab nor Unfavorabl Budget Actual 9000 9000 2S ins $ $ $