Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 nor Unfavorable 1,900 Favorable Budget Actual Sales in units 8,100 10.000 Variable expenses Sales commissions $1.944 $2,700 $756 Unfavorable Advertising expense 972 700 272 Favorable Travel expense 3,240 4,000 760 Unfavorable 1.458 1,400 58 Favorable Free samples given out Total variable 7.614 8,800 1186 Unfavorable Fixed expenses Rent 1.900 1.900 -O- Neither Favorable nor Unfavorable Sales salaries 1,400 1,400 -0. Neither Favorable nor Unfavorable Rent 1,900 1.900 Sales salaries 1.400 1.400 Office salaries 800 800 Depreciation--autos (sales staff) -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $1.186 Unfavorable 400 400 Total fixed 4,500 4,500 Total expenses $12.114 $13,300 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.) SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 N Budget Actual r SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorab nor Unfavorable Budget Actual I > 3 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Algorithms Understanding Algorithmic Systems From The Outside In Foundations And Trends

Authors: Danaƫ Metaxa, Joon Sung Park, Ronald E Robertson, Karrie Karahalios, Christo Wilson, Jeff Hancock, Christian Sandvig

1st Edition

1680839160, 978-1680839166

More Books

Students also viewed these Accounting questions

Question

What is meant by planning or define planning?

Answered: 1 week ago

Question

Define span of management or define span of control ?

Answered: 1 week ago

Question

What is meant by formal organisation ?

Answered: 1 week ago

Question

What is meant by staff authority ?

Answered: 1 week ago