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

Variable expenses

Fixed expenses

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. $($List variable costs before fixed costs.$)$