As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Grouper Company for the month of October. Sales in units Variable expenses Sales commissions GROUPER COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Budget 7,360 $2,208 Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable 9,200 1,840 Favorable $2,392 $184 Unfavorable SUP

As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Grouper Company for the month of October. 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. (a) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses.) Should Joe have been reprimanded? GROUPER COMPANY Selling Expense Flexible Budget Report Clothing Department Budget Actual \begin{tabular}{|c|c|c|c|c|} \hline Advertising expense & 736 & 782 & 46 & Unfavorable \\ \hline Travel expense & 3,312 & 3,772 & 460 & Unfavorable \\ \hline Free samples given out & 1,472 & 1,288 & 184 & Favorable \\ \hline Total variable & 7.728 & 8,234 & 506 & Unfavorable \\ \hline \multicolumn{5}{|l|}{ Fixed expenses } \\ \hline Rent & 1,380 & 1,380 & -0 & Neither Favorable nor Unfavorable \\ \hline Sales salaries & 1,104 & 1,104 & 0 & Neither Favorable nor Unfavorable \\ \hline Office salaries & 736 & 736 & 0 & Neither Favorable nor Unfavorable \\ \hline Depreciation-autos (sales staff) & 460 & 460 & -0 & Neither Favorable nor Unfavorable \\ \hline Total fixed & 3,680 & 3,680 & -0 & Neither Favorable nor Unfavorable \\ \hline Total expenses & $11,408 & $11,914 & $506 & Unfavorable \\ \hline \end{tabular} s Difference Favorable Unfavorable Neither Favorable Actual nor Unfavorable Should Joe have been reprimanded