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As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Pina Colada Company for the

As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Pina Colada Company for the month of October.

PINA COLADA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022

Difference

Budget

Actual

Favorable Unfavorable Neither Favorable nor Unfavorable

Sales in units

8,160

10,200

2,040

Favorable

Variable expenses

Sales commissions

$ 2,448

$ 2,652

$ 204

Unfavorable

Advertising expense

816

867

51

Unfavorable

Travel expense

3,672

4,182

510

Unfavorable

Free samples given out

1,632

1,428

204

Favorable

Total variable

8,568

9,129

561

Unfavorable

Fixed expenses

Rent

1,530

1,530

0

Neither Favorable nor Unfavorable

Sales salaries

1,224

1,224

0

Neither Favorable nor Unfavorable

Office salaries

816

816

0

Neither Favorable nor Unfavorable

Depreciationautos (sales staff)

510

510

0

Neither Favorable nor Unfavorable

Total fixed

4,080

4,080

0

Neither Favorable nor Unfavorable

Total expenses

$ 12,648

$ 13,209

$ 561

Unfavorable

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

PINA COLADA COMPANY Selling Expense Flexible Budget Report Clothing Department choose the accounting period October 31, 2022For the Year Ended October 31, 2022For the Month Ended October 31, 2022

Difference

Budget

Actual

Favorable Unfavorable Neither Favorable nor Unfavorable

select an opening flexible budget report item RentSales in UnitsTotal Fixed ExpensesTotal Variable ExpensesSales SalariesFree SamplesOffice SalariesTotal ExpensesFixed ExpensesTravel ExpenseSales CommissionsAdvertising ExpenseDepreciationSales Staff AutosVariable Expenses

enter a number of units

enter a number of units

select an opening name for section one Sales in UnitsTotal Variable ExpensesRentTotal ExpensesOffice SalariesSales SalariesVariable ExpensesTravel ExpenseFree SamplesTotal Fixed ExpensesDepreciationSales Staff AutosSales CommissionsAdvertising ExpenseFixed Expenses

select a flexible budget report item Travel ExpenseDepreciationSales Staff AutosSales SalariesFixed ExpensesTotal ExpensesSales in UnitsTotal Variable ExpensesRentSales CommissionsVariable ExpensesTotal Fixed ExpensesAdvertising ExpenseOffice SalariesFree Samples

$ enter a dollar amount

$ enter a dollar amount

$ enter a dollar amount

select an option Neither Favorable nor UnfavorableFavorableUnfavorable

select a flexible budget report item Sales CommissionsSales in UnitsTotal Fixed ExpensesAdvertising ExpenseDepreciationSales Staff AutosVariable ExpensesRentTotal ExpensesFree SamplesOffice SalariesTotal Variable ExpensesFixed ExpensesSales SalariesTravel Expense

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option FavorableNeither Favorable nor UnfavorableUnfavorable

select a flexible budget report item Advertising ExpenseVariable ExpensesFixed ExpensesSales CommissionsRentSales in UnitsTotal ExpensesFree SamplesTravel ExpenseTotal Variable ExpensesOffice SalariesDepreciationSales Staff AutosTotal Fixed ExpensesSales Salaries

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option UnfavorableFavorableNeither Favorable nor Unfavorable

select a flexible budget report item Total ExpensesTotal Fixed ExpensesDepreciationSales Staff AutosFree SamplesSales in UnitsOffice SalariesTotal Variable ExpensesFixed ExpensesTravel ExpenseVariable ExpensesSales CommissionsRentAdvertising ExpenseSales Salaries

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option FavorableUnfavorableNeither Favorable nor Unfavorable

select a closing name for section one Total Fixed ExpensesTotal ExpensesFree SamplesSales CommissionsRentAdvertising ExpenseVariable ExpensesTotal Variable ExpensesTravel ExpenseFixed ExpensesOffice SalariesSales SalariesDepreciationSales Staff AutosSales in Units

enter a total amount for section one

enter a total amount for section one

enter a dollar amount

select an option UnfavorableFavorableNeither Favorable nor Unfavorable

select an opening name for section two Sales SalariesFixed ExpensesTotal Variable ExpensesVariable ExpensesRentDepreciationSales Staff AutosOffice SalariesTotal Fixed ExpensesFree SamplesSales in UnitsSales CommissionsAdvertising ExpenseTravel ExpenseTotal Expenses

select a flexible budget report item DepreciationSales Staff AutosFixed ExpensesTravel ExpenseSales in UnitsFree SamplesVariable ExpensesTotal ExpensesSales SalariesAdvertising ExpenseTotal Fixed ExpensesSales CommissionsRentOffice SalariesTotal Variable Expenses

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option UnfavorableNeither Favorable nor UnfavorableFavorable

select a flexible budget report item DepreciationSales Staff AutosTotal ExpensesVariable ExpensesSales CommissionsFixed ExpensesAdvertising ExpenseOffice SalariesRentFree SamplesTotal Fixed ExpensesSales in UnitsTravel ExpenseSales SalariesTotal Variable Expenses

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option FavorableUnfavorableNeither Favorable nor Unfavorable

select a flexible budget report item Total Variable ExpensesSales CommissionsAdvertising ExpenseSales in UnitsTotal Fixed ExpensesSales SalariesOffice SalariesRentFixed ExpensesVariable ExpensesDepreciationSales Staff AutosFree SamplesTravel ExpenseTotal Expenses

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option FavorableUnfavorableNeither Favorable nor Unfavorable

select a flexible budget report item Travel ExpenseSales CommissionsVariable ExpensesTotal ExpensesOffice SalariesSales in UnitsAdvertising ExpenseTotal Variable ExpensesFixed ExpensesDepreciationSales Staff AutosFree SamplesSales SalariesTotal Fixed ExpensesRent

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option Neither Favorable nor UnfavorableFavorableUnfavorable

select a closing name for section two Total Variable ExpensesOffice SalariesDepreciationSales Staff AutosFixed ExpensesTotal ExpensesSales in UnitsVariable ExpensesFree SamplesTotal Fixed ExpensesSales CommissionsAdvertising ExpenseRentTravel ExpenseSales Salaries

enter a total amount for section two

enter a total amount for section two

enter a dollar amount

select an option FavorableUnfavorableNeither Favorable nor Unfavorable

select a closing flexible budget report item DepreciationSales Staff AutosSales CommissionsFixed ExpensesTotal ExpensesOffice SalariesTravel ExpenseVariable ExpensesSales in UnitsRentTotal Variable ExpensesSales SalariesTotal Fixed ExpensesAdvertising ExpenseFree Samples

$ enter a total amount for this report

$ enter a total amount for this report

$ enter a total amount for this report

select an option UnfavorableFavorableNeither Favorable nor Unfavorable

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