As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Lily Company for the month of October. LILY COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 8,400 9,000 600 Favorable Variable expenses Sales commissions $2,352 $2,160 $192 Favorable Advertising expense 1,008 720 288 Favorable Travel expense 3,696 3,600 96 Favorable Free samples given out 1,512 1,080 432 Favorable Total variable 8,568 7,560 1,008 Favorable 1,008 720 Advertising expense 288 Favorable 3,696 Travel expense 3,600 96 Favorable 1,512 1,080 Free samples given out 432 Favorable 8,568 Total variable 7,560 1,008 Favorable Fixed expenses Rent 1,100 1,100 -O- Neither Favorable nor Unfavorable Sales salaries 1,200 1,200 -0- Neither Favorable nor Unfavorable Office salaries 700 700 -O- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 400 400 -O- Neither Favorable nor Unfavorable Total fixed 3,400 3,400 -O- Neither Favorable nor Unfavorable Total expenses $11,968 $10,960 $1,008 Favorable 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.) LILY COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Ne Budget Actual no v A LA A A A > > > > > Neither Favorable nor Unfavorable Actual > > > > > > > > > >