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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

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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 nor Unfavorable Budget Actual Sales in units 7,600 9,000 1,400 Favorable Variable expenses Sales commissions $1,672 $ 2,520 $ 848 Unfavorable 836 630 206 Favorable Advertising expense Travel expense Free samples given out 3,496 4,050 4554 Unfavorable 30 Unfavorable 1,140 1.170 7,144 8,370 Total variable 1,226 Unfavorable Fixed expenses bin nor Infurable Fixed expenses Rent 1.700 1,700 1.200 1,200 Sales salaries Office salaries Depreciation-autos (sales staff) 700 700 -0- Neither Favorable nor Unfavorable -0. Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $ 1,226 Unfavorable 400 400 Total fixed 4,000 4,000 Total expenses $11,144 $ 12,370 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. (.ist variable costs before fixed costs.) SORIA COMPANY Sel.ing Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 D F Un Neith nort Budget Actual 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 $ $ THE MAN * $ $

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