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
	Budget	Actual	Favorable Unfavorable
Sales in units	8,000	10,000	2,000	Favorable
Variable expenses
Sales commissions	$ 2,400	$ 2,600	$ 200	Unfavorable
Advertising expense	720	850	130	Unfavorable
Travel expense	3,600	4,100	500	Unfavorable
Free samples given out	1,600	1,400	200	Favorable
Total variable	8,320	8,950	630	Unfavorable
Fixed expenses
Rent	1,500	1,500	0
Sales salaries	1,200	1,200	0
Office salaries	800	800	0
Depreciationautos (sales staff)	500	500	0
Total fixed	4,000	4,000	0
Total expenses	$12,320	$12,950	$630	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.

SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020
						Difference
		Budget		Actual		Favorable F Unfavorable U
Sales in units		10,000		10,000
Variable expenses
Sales commissions ($.30)		$3,000		$2,600		$400	F
Advertising expense ($.09)		900		850		50	F
Travel expense ($.45)		4,500		4,100		400	F
Free samples ($.20)		2,000		1,400		600	F
Total variable expenses ($1.04)		10,400		8,950		1,450
Fixed expenses
Rent		1,500		1,500		0
Sales salaries		1,200		1,200		0
Office salaries		800		800		0
Depreciationsale staff autos		500		500		0
Total fixed expenses		4,000		4,000		0
Total expenses		$14,400		$12,950		$1,450	F

Should Joe have been reprimanded? Explain.