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, 2014
			Difference
	Budget	Actual	Favorable (F) Unfavorable (U) Neither favorable nor unfavorable (N)
Sales in units	8,000	9,900	1,900	F
Variable expenses
Sales commissions	$1,680	$2,574	$894	U
Advertising expense	800	693	107	F
Travel expense	3,920	3,762	158	F
Free samples given out	1,920	1,386	534	F
Total variable	8,320	8,415	95	U
Fixed expenses
Rent	1,900	1,900	0
Sales salaries	1,300	1,300	0
Office salaries	800	800	0
Depreciationautos (sales staff)	400	400	0
Total fixed	4,400	4,400	0
Total expenses	$12,720	$12,815	$95	U

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. (a) PART 1:

Prepare a budget report based on flexible budget data to help Joe. (If answer is zero, please enter 0, do not leave any fields blank.)

(b) PART 2: Should Joe have been reprimanded as per the flexible budget report?