As sales manager,Joe Batistawas given the following static budget report for selling expenses in the Clothing Department of Sunland Company for the month of October.

Budget Actuals Difference Favorable/ Unfavorable/ Neither favorable Nor Unfavorable

Sales in units 7,700 11,000 3,300 Favorable

Variable expenses

Sales commissions $1,848 $2,860 $1,012 Unfavorable

Advertising expense 1,078 990 88 Favorable

Travel expense 3,696 3,850 154 Unfavorable

Free samples given out 1,540 1,210 330 Favorable

Total variable 8,162 8,910 748 Unfavorable

Fixed expenses

Rent 1,100 1,100 -0- Neither Favorable nor Unfavorable

Sales salaries 1,000 1,000 -0- Neither Favorable nor Unfavorable

Office salaries 600 600 -0- Neither Favorable nor Unfavorable

Depreciationautos (sales staff) 600 600 -0- Neither Favorable nor Unfavorable

Total fixed 3,300 3,300 -0- Neither Favorable nor Unfavorable

Total expenses $11,462 $12,210 $748 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.

Prepare a budget report based on flexible budget data to help Joe. (List variable costs before fixed costs.)

BudgetActualsDifferenceFavorable/ Unfavorable/ Neither favorable Nor Unfavorable

Sales in units $ $ $

Variable Expenses

Sales Commission

Advertising Expenses

Travel Expense

Free Sample

Total Variable

Fixed expense

Rent

Sales Salaries

Office salaries

Depreciation sale staff autos

Total fixed

Total expenses