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, 2014
Difference
Budget	Actual	Favorable F Unfavorable U Neither Favorable nor Unfavorable N
Sales in units	7,600	9,400	1,800	F
Variable expenses
Sales commissions	$1,824	$2,444	$620	U
Advertising expense	912	752	160	F
Travel expense	3,268	3,572	304	U
Free samples given out	1,520	1,410	110	F
Total variable	7,524	8,178	654	U
Fixed expenses
Rent	1,600	1,600	0	N
Sales salaries	1,200	1,200	0	N
Office salaries	800	800	0	N
Depreciationautos (sales staff)	500	500	0	N
Total fixed	4,100	4,100	0	N
Total expenses	$11,624	$12,278	$654	U

As a result of this budget report, Joe was called into the presidents 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.)