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.

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.

SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2017 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 7700 11000 3300 Favorable Variable expenses Sales commissions $ 1848 $2860 $1012 Unfavorable Advertising expense 1078 990 88 Favorable Travel expense 3696 3850 154 Unfavorable Free samples given out 1540 1210 330 Favorable Total variable 8162 8910 748 Unfavorable Fixed expenses Rent 1100 1100 -0- Neither Favorable nor Unfavorable Sales salaries 1000 1000 -0- Neither Favorable nor Unfavorable Office salaries 600 600 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 600 600 -0- Neither Favorable nor Unfavorable Total fixed 3300 3300 -0- Neither Favorable nor Unfavorable Total expenses $11462 $12210 $748 UnfavorablePrepare a budget report based on flexible budget data to help Joe. (List variable costs before fixed costs. Do not leave any answer field blank. Enter 0 for amounts.) SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2017 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable