Question
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 | |||||||
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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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