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

SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 8,500 10,000 1,500 Favorable Variable expenses Sales commissions $2,380 $2,600 $220 Unfavorable Advertising expense 850 900 50 Unfavorable Travel expense 3,910 3,500 410 Favorable Free samples given out 1,615 1,100 515 Favorable Total variable 8,755 8,100 655 Favorable Fixed expenses Rent 1,700 1,700 -0 Neither Favorable nor Unfavorable Sales salaries 1,000 1,000 -0 Neither Favorable nor Unfavorable Ofce salaries 600 600 -0 Neither Favorable nor Unfavorable Depreciationautos (sales staff) 500 500 -0 Neither Favorable nor Unfavorable Total fixed 3,800 3,800 0 Neither Favorable nor Unfavorable Total expenses $12,555 $11,900 $655 Favorable SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Budget Actual Sales in Units 10,000 Variable Expenses Sales Commissions $ 2,380 $ 2,600 to Advertising Expense 850 900 Travel Expense 3,910 3,500 Free Samples 1,615 1,100 Total Variable Expenses 8,755 8,100 Fixed Expenses Rent 1,700 i 1,700SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable 10,000 2,380 $ 2,600 i 220 Unfavorable 850 900 50 Unfavorable 3,910 3,500 410 Favorable 1,615 1,100 515 Favorable 8,755 8,100 655 Favorable 1,700 1,700 0 Neither Favorable nor Unfavorable 1,000 1,000 0 Neither Favorable nor Unfavorable