As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Sar Company for the month of October. SARASOTA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual 8,640 10,800 2,160 Favorable $2,592 $2,808 $216 Unfavorable 864 918 54 Unfavorable 3,888 4,428 540 Unfavorable 1.728 1,512 216 Favorable 9,072 9.666 594 Unfavorable Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed Total expenses 1,620 1,620 -0- Neither Favorable nor Unfavorable 1.296 1,296 864 864 -0 Neither Favorable nor Unfavorable -0. Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable 540 540 4,320 4,320 -O- Neither Favorable nor Unfavorable $13,392 $13.986 $594 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. (a) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses.)