As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Flounder Company for the month of October. FLOUNDER COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 7,200 9,000 1,800 Favorable Variable expenses Sales commissions $2,160 $2,340 $180 Unfavorable Advertising expense 648 765 117 Unfavorable Travel expense 3,240 3,690 450 Unfavorable Free samples given out 1,440 1,260 180 Favorable Total variable 7,488 8,055 567 Unfavorable Fixed expenses Rent 1,350 1,350 -0- Neither Favorable nor Unfavorable Sales salaries 1,080 1,080 -0- Neither Favorable nor Unfavorable Office salaries 720 720 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 450 450 -0- Neither Favorable nor Unfavorable Total fixed 3,600 3,600 -0- Neither Favorable nor Unfavorable Total expenses $11,088 $11,655 $567 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. (a) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses.) Sales in Units Variable Expenses Sales Commissions Advertising Expense Travel Expense +A FLOUNDER COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2022 Budget 7200 2160 648 3240 A Actual 9000 2340 765 3690 A N n 180 117 450 1440 1260 180 Total Variable Expenses 7488 8055 567 Free Samples Fixed Expenses Rent Sales Salaries Office Salaries 1350 1350 1080 1080 720 720 0 0 0 Depreciation-Sales Staff Autos 450 450 0 (b) Total Fixed Expenses Total Expenses Should Joe have been reprimanded? No 3600 3600 0 11088 11655 567