As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Marigold Company for the month of October. MARIGOLD COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 7,520 9,400 1,880 Favorable Variable expenses Sales commissions $2,256 $2,444 $188 Unfavorable Advertising expense 752 799 47 Unfavorable Travel expense 3,384 3,854 470 Unfavorable Free samples given out 1,504 1,316 188 Favorable Total variable 7,896 8,413 517 Unfavorable Fixed expenses Rent 1,410 1,410 -0- Neither Favorable nor Unfavorable Sales salaries 1,128 1,128 -0- Neither Favorable nor Unfavorable Office salaries 752 752 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 470 470 -0- Neither Favorable nor Unfavorable Total fixed 3,760 3,760 -0- Neither Favorable nor Unfavorable Total expenses $11,656 $12,173 $517 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.