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 7,900 10,000 2,100 Favorable Variable expenses Sales commissions $1,896 $2,400 $504 Unfavorable Advertising expense 1,027 800 227 Favorable Travel expense 3,160 4,500 1,340 Unfavorable Free samples given out 1,185 1,300 115 Unfavorable Total variable 7,268 9,000 1,732 Unfavorable Fixed expenses Rent 1,200 1,200 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) 500 500 0 Neither Favorable nor Unfavorable Total fixed 3,700 3,700 0 Neither Favorable nor Unfavorable Total expenses $10,968 $12,700 $1,732 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.)