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. 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 7,500 11,000 3,500 Favorable Variable expenses Sales commissions $1,950 $2,970 $1,020 Unfavorable Advertising expense 975 1,210 235 Unfavorable Travel expense 3,600 3,850 250 Unfavorable Free samples given out 1,200 1,540 340 Unfavorable Total variable 7,725 9,570 1,845 Unfavorable Fixed expenses Rent 1,500 1,500 -0- Neither Favorable nor Unfavorable Sales salaries 1,300 1,300 -0- Neither Favorable nor Unfavorable Office salaries 900 900 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 600 600 -O- Neither Favorable nor Unfavorable Total fixed 4,300 4,300 -0- Neither Favorable nor Unfavorable Total expenses $12,025 $13,870 $1,845 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.) Prepare a budget report based on flexible budget data to help Joe. (List variable costs before fixed costs.) SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in Units 11000 11000 Variable Expenses Sales Commissions 2,860.00 (220) Unfavorable Advertising Expense 220.00 Favorable x Travel Expense 3,850.00 Favorable X x Free Samples Favorable Total Variable Expenses 11,330.00 Favorable Fixed Expenses Rent Neither Favorable nor Unfavorable v Sales Salaries Neither Favorable nor Unfavorable Office Salaries Neither Favorable nor Unfavorable Depreciation Sale Staff Autos 600 600 Neither Favorable nor Unfavorable Total Fixed Expenses Neither Favorable nor Unfavorable Total Expenses Favorable