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.

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.)

SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable 7,800 10,000 2,200 Favorable Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable $1,872 936 3,120 1,794 7,722 $2,400 900 4,000 1,300 8,600 $528 Unfavorable 36 Favorable 880 Unfavorable 494 Favorable 878 Unfavorable Fixed expenses Rent Sales salaries Orice salaries Depreciation-autos (sales stalt) Total fixed Total expenses 1,700 1,700 1,100 1,100 800 800 400 400 4,000 4,000 $11,722 $12.500 -- Neither Favorable nor Unfavorable -- Neither Favorable nor Unfavorable -O-Neither Favorable nor Unfavorable -- Neither favorable nor Unfavorable -- Neither Favorable nor Unfavorable 5878 unfavorable