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 Neither Favorable nor Unfavorable
Sales in units	7,800		10,000		2,200	Favorable
Variable expenses
Sales commissions	$2,184		$2,400		$216	Unfavorable
Advertising expense	1,092		1,000		92	Favorable
Travel expense	3,432		4,500		1,068	Unfavorable
Free samples given out	1,560		1,100		460	Favorable
Total variable	8,268		9,000		732	Unfavorable
Fixed expenses
Rent	1,700		1,700		0	Neither Favorable nor Unfavorable
Sales salaries	1,400		1,400		0	Neither Favorable nor Unfavorable
Office salaries	600		600		0	Neither Favorable nor Unfavorable
Depreciationautos (sales staff)	600		600		0	Neither Favorable nor Unfavorable
Total fixed	4,300		4,300		0	Neither Favorable nor Unfavorable
Total expenses	$12,568		$13,300		$732	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. Prepare a budget report based on flexible budget data to help Joe. (List variable costs before fixed costs.)

Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Differen Favorab Unfavora Neither Fave nor Unfavo Budget Actual 40003 10000 2,400 Fox 1000 43) Uni 1,100 |||||||||||||||||||| 1,700 Net 1.405 140 600 Nel 4,200 13.20 In