As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Sheffield Company for the month of October. SHEFFIELD COMPANY Clothing Department Budget Report For the Month Ended October 31, 2025 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 8,800 11,000 2,200 Favorable Variable expenses Sales commissions $2,640 $2,860 $220 Unfavorable Advertising expense 792 935 143 Unfavorable Travel expense 3,960 4,510 550 Unfavorable Free samples given out 1,760 1,540 220 Favorable Total variable 9,152 9,845 693 Unfavorable Fixed expenses Rent 1,650 1,650 -0- Neither Favorable nor Unfavorable Sales salaries 1,320 1,320 -0- Neither Favorable nor Unfavorable Sales salaries 1,320 1,320 -0- Neither Favorable nor Unfavorable Office salaries 880 880 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 550 550 -0- Neither Favorable nor Unfavorable Total fixed 4,400 4,400 -0- Neither Favorable nor Unfavorable Total expenses $13,552 $14,245 $693 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.) Total Expenses Sales Salaries Total Variable Expenses Rent Advertising Expense Variable Expenses Total Fixed Expenses Office Salaries Sales in Units Fixed Expenses Depreciation-Sales Staff Autos Free Samples Sales Commissions Travel Expense SHEFFIELD COMPANY Selling Expense Flexible Budget Report Clothing Department F Ui Neith Budget Actual nor A SA LA (b) Should Joe have been reprimanded? $ F +A $ $ SHEFFIELD COMPANY Selling Expense Flexible Budget Report Clothing Department Budget Actual +A A Difference Favorable Unfavorable Neither Favorable nor Unfavorable SA +A SA +A +A +A $