As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Monty Company for the month of October MONTY COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable Budget nor Unfavorable 7,840 1,960 Favorable Actual 9.800 $2,352 $2.548 784 833 Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable Fixed expenses 3,528 4,018 $196 Unfavorable 49 Unfavorable 490 Unfavorable 196 Favorable 539 Unfavorable 1,568 1.372 8,232 8,771 Rent 1.470 1.470 1,176 1.176 784 784 Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $539 Unfavorable 490 490 3,920 3.920 Total expenses $12,152 $12,691 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. MONTY COMPANY Selling Expense Flexible Budget Report Clothing Department Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual $ $ > $ $ $