As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Bridgeport Company for the month of October. BRIDGEPORT COMPANY Clothing Department Budget Report For the Month Ended October 31, 2025 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 6,880 8,600 1,720 Favorable Variable expenses Sales commissions $2,064 $2,236 $172 Unfavorable Advertising expense 688 731 43 Unfavorable Travel expense 3,096 3,526 430 Unfavorable Free samples given out 1,376 1,204 172 Favorable Total variable 7,224 7,697 473 Unfavorable Fixed expenses Rent 1,290 1,290 -0- Neither Favorable nor Unfavorable Sales salaries 1,032 1,032 -0- Neither Favorable nor Unfavorable Office salaries 688 688 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 430 430 -0- Neither Favorable nor Unfavorable Total fixed 3,440 3,440 Total expenses $10,664 $11,137 -0- Neither Favorable nor Unfavorable $473 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.)