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

SARASOTA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022
					Difference
	Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
Sales in units	8,640		10,800		2,160	Favorable
Variable expenses
Sales commissions	$2,592		$2,808		$216	Unfavorable
Advertising expense	864		918		54	Unfavorable
Travel expense	3,888		4,428		540	Unfavorable
Free samples given out	1,728		1,512		216	Favorable
Total variable	9,072		9,666		594	Unfavorable
Fixed expenses
Rent	1,620		1,620		0	Neither Favorable nor Unfavorable
Sales salaries	1,296		1,296		0	Neither Favorable nor Unfavorable
Office salaries	864		864		0	Neither Favorable nor Unfavorable
Depreciationautos (sales staff)	540		540		0	Neither Favorable nor Unfavorable
Total fixed	4,320		4,320		0	Neither Favorable nor Unfavorable
Total expenses	$13,392		$13,986		$594	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