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

NOVAK COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022
					Difference
	Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
Sales in units	10,400		13,000		2,600	Favorable
Variable expenses
Sales commissions	$ 3,120		$ 3,380		$ 260	Unfavorable
Advertising expense	936		1,105		169	Unfavorable
Travel expense	4,680		5,330		650	Unfavorable
Free samples given out	2,080		1,820		260	Favorable
Total variable	10,816		11,635		819	Unfavorable
Fixed expenses
Rent	1,950		1,950		0	Neither Favorable nor Unfavorable
Sales salaries	1,560		1,560		0	Neither Favorable nor Unfavorable
Office salaries	1,040		1,040		0	Neither Favorable nor Unfavorable
Depreciationautos (sales staff)	650		650		0	Neither Favorable nor Unfavorable
Total fixed	5,200		5,200		0	Neither Favorable nor Unfavorable
Total expenses	$ 16,016		$ 16,835		$ 819	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.)

NOVAK COMPANY Selling Expense Flexible Budget Report Clothing Department choose the accounting period For the Month Ended October 31, 2022For the Year Ended October 31, 2022October 31, 2022
						Difference
		Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
select an opening flexible budget report item Sales SalariesTravel ExpenseFixed ExpensesSales CommissionsTotal Fixed ExpensesFree SamplesRentAdvertising ExpenseTotal Variable ExpensesTotal ExpensesOffice SalariesVariable ExpensesDepreciationSales Staff AutosSales in Units		enter a number of units		enter a number of units
select an opening name for section one Office SalariesDepreciationSales Staff AutosTotal Fixed ExpensesRentFixed ExpensesAdvertising ExpenseSales CommissionsVariable ExpensesTravel ExpenseSales SalariesSales in UnitsFree SamplesTotal ExpensesTotal Variable Expenses
select a flexible budget report item Travel ExpenseSales SalariesSales in UnitsOffice SalariesFree SamplesTotal Fixed ExpensesDepreciationSales Staff AutosVariable ExpensesAdvertising ExpenseFixed ExpensesSales CommissionsTotal Variable ExpensesTotal ExpensesRent		$ 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 Fixed ExpensesSales SalariesVariable ExpensesFree SamplesOffice SalariesDepreciationSales Staff AutosTotal ExpensesRentTravel ExpenseSales in UnitsSales CommissionsTotal Variable ExpensesAdvertising ExpenseFixed 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 Sales in UnitsOffice SalariesTotal ExpensesRentFree SamplesVariable ExpensesTravel ExpenseTotal Fixed ExpensesSales CommissionsDepreciationSales Staff AutosFixed ExpensesAdvertising ExpenseTotal Variable ExpensesSales Salaries		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 Sales in UnitsAdvertising ExpenseDepreciationSales Staff AutosFree SamplesTravel ExpenseRentTotal Variable ExpensesTotal ExpensesSales CommissionsFixed ExpensesOffice SalariesTotal Fixed ExpensesVariable ExpensesSales 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 Sales SalariesFixed ExpensesTotal Variable ExpensesTotal ExpensesAdvertising ExpenseTravel ExpenseOffice SalariesSales in UnitsDepreciationSales Staff AutosSales CommissionsTotal Fixed ExpensesVariable ExpensesFree SamplesRent		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 Advertising ExpenseFixed ExpensesTravel ExpenseTotal Fixed ExpensesVariable ExpensesRentTotal Variable ExpensesSales CommissionsFree SamplesSales SalariesTotal ExpensesSales in UnitsDepreciationSales Staff AutosOffice Salaries
select a flexible budget report item Free SamplesSales SalariesRentTotal ExpensesTotal Variable ExpensesSales in UnitsTravel ExpenseAdvertising ExpenseFixed ExpensesVariable ExpensesOffice SalariesTotal Fixed ExpensesSales CommissionsDepreciationSales Staff Autos		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 Total ExpensesSales in UnitsSales SalariesTotal Variable ExpensesTotal Fixed ExpensesAdvertising ExpenseTravel ExpenseVariable ExpensesFree SamplesRentSales CommissionsDepreciationSales Staff AutosOffice SalariesFixed 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 Sales in UnitsSales CommissionsTotal ExpensesFixed ExpensesRentSales SalariesTotal Fixed ExpensesOffice SalariesTotal Variable ExpensesTravel ExpenseAdvertising ExpenseFree SamplesVariable ExpensesDepreciationSales Staff Autos		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 ExpenseRentTotal Fixed ExpensesTotal Variable ExpensesFree SamplesSales CommissionsVariable ExpensesTotal ExpensesSales SalariesOffice SalariesSales in UnitsDepreciationSales Staff AutosFixed ExpensesAdvertising Expense		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option UnfavorableFavorableNeither Favorable nor Unfavorable
select a closing name for section two Sales in UnitsFree SamplesRentAdvertising ExpenseOffice SalariesDepreciationSales Staff AutosTotal Fixed ExpensesTotal ExpensesFixed ExpensesSales CommissionsVariable ExpensesSales SalariesTotal Variable ExpensesTravel Expense		enter a total amount for section two		enter a total amount for section two		enter a dollar amount	select an option Neither Favorable nor UnfavorableUnfavorableFavorable
select a closing flexible budget report item Total Variable ExpensesVariable ExpensesDepreciationSales Staff AutosTravel ExpenseOffice SalariesSales CommissionsTotal Fixed ExpensesAdvertising ExpenseSales in UnitsRentFixed ExpensesSales SalariesFree SamplesTotal Expenses		$ enter a total amount for this report		$ enter a total amount for this report		$ enter a total amount for this report	select an option Neither Favorable nor UnfavorableFavorableUnfavorable

(b) Should Joe have been reprimanded? select an option YesNo