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 7.900 9,000 1,100 Favorable $1.896 Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable 1.106 3,318 $2,430 $534 Unfavorable 630 476 Favorable 3,150 168 Favorable 990 195 Favorable 7,200 305 Favorable 1.185 7,505 Fixed expenses Rent 1.200 1.200 Sales salaries 1.000 1,000 -0- Neither Favorable nor Unfavorable -O-Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable Office salaries 700 700 Depreciation-autos (sales staff) 400 400 -O-Neither Favorable nor Unfavorable Total fixed 3.300 3.300 -O-Neither Favorable nor Unfavorable Total expenses $10,805 $10,500 $305 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. 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 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual