As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Whispering Winds Company for the month of October. Sales in units Variable expenses F Sales commissions Advertising expense Travel expense Free samples given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed Total expenses WHISPERING WINDS COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Budget 8,960 $2,698 896 4,032 1.792 9,408 1,680 1,344 896 560 4,480 $19,888 Actual 11,200 $2,912 952 4,592 1,568 10,024 $14.504 Difference Favorable Unfavorable Neither Favorable nor Unfavorable 2.240 Favorable $224 Unfavorable 56 Unfavorable 560 Unfavorable 224 Favorable 616 Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $616 Unfavorable As a result of this budget report, Joe was called into the president's office and congratulated on his fine sales performance. Hews 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.

As sales manager, Joe Batista was given the followinestatic budeat report for selling apenses in the Clothina Departbert of Whisesring Winds Compare for the month of October