As sales manager, Kajsa Keyser was given the following static budget report for selling expenses in the clothing department of Dunham Company for the month of October DUNHAM COMPANY Clothing Department Budget Report Month Ended October 31, 2020 Difference Favourable Unfavourable Neither Favourable Budget Actual nor Unfavourable 7.900 11.000 3,100 Favourable Sales in units $2,054 869 $2,860 770 Variable costs Sales commissions Advertising expense Travel expense Free samples given out Total variable costs 3,476 $806 Unfavourable 99 Favourable 1.474 Unfavourable 449 Favourable 1.732 Unfavourable 4,950 1.210 9.790 1.659 8,058 1.659 8,058 1,210 9.790 449 Favourable 1.732 Unfavourable Free samples given out Total variable costs Fixed costs Rent Sales salaries Office salaries Depreciation--vehicles (sales staff) Total fixed costs Total costs W.900 1,100 800 600 4,400 $12.458 1.900 1.100 800 600 -O- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable -0- Neither Favourable nor Unfavourable -0. Neither Favourable nor Unfavourable $1.732 Unfavourable 4,400 $14,190 As a result of this budget report, Kajsa was called into the president's office and congratulated on her fine sales performance. She was reprimanded, however, for allowing her costs to get out of control. Kajsa knew something was wrong with the performance report that she had been given. However, she was not sure what to do and has come to you for advice. (a) Prepare a budget report based on flexible budget data to help Kajsa, (List variable costs before fixed costs.) Month Ended October 31, 2020 Difference Favourable Unfavourable Neither Favourable Budget Actual nor Unfavourable Sales in units 7,900 11,000 3,100 Favourable Variable costs Sales commissions $2,054 $2,860 $806 Unfavourable Advertising expense 869 770 99 Favourable Travel expense 3,476 4,950 1.474 Unfavourable Free samples given out 1,659 1.210 449 Favourable Total variable costs 8,058 9.790 1.732 Unfavourable Fixed costs Rent 1.900 1.900 -0. Neither Favourable nor Unfavourable Sales salaries 1.100 1.100 -0 Neither Favourable nor Unfavourable Office salaries 800 800 -0 Neither Favourable nor Unfavourable Depreciation-vehicles (sales staff) 600 600 +0 Neither Favourable nor Unfavourable Total fixed costs 4.400 4,400 -O Neither Favourable nor Unfavourable Total costs $12.458 $14.190 $1.732 Unfavourable