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

Sales in units 8,500 11,000 2,500 Favourable

Variable costs

Sales commissions $2,210 $2,640 $430 Unfavourable

Advertising expense 935 1,100 165 Unfavourable

Travel expense 3,740 4,400 660 Unfavourable

Free samples given out 2,040 1,210 830 Favourable

Total variable costs 8,925 9,350 425 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 900 900 -0- Neither Favourable nor Unfavourable

Depreciationvehicles (sales staff) 600 600 -0- Neither Favourable nor Unfavourable

Total fixed costs 4,500 4,500 -0- Neither Favourable nor Unfavourable

Total costs $13,425 $13,850 $425 Unfavourable

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 doand has come to you for advice.

(a)Prep a budget report based on flexible budget data to help Kajsa.(List variable costs before fixed costs.)

DUNHAM COMPANY

Selling Expense Flexible Budget Report

Clothing Department

For the Month Ended October 31, 2020

Difference

Favourable

Unfavourable

Neither Favourable

Budget Actual nor Unfavourable

___________________ __________________ _________________

___________________

___________________ $ __________________ $__________________ $__________________ _____________________

___________________ ____________________ __________________ __________________ _____________________

___________________ ____________________ ___________________ __________________ _____________________

___________________ _____________________ ___________________ __________________ _____________________

___________________ _____________________ ____________________ __________________ ______________________

___________________

___________________ ______________________ _____________________ ___________________ ______________________

___________________ ______________________ _____________________ ___________________ ______________________

___________________ ______________________ _____________________ ___________________ ______________________

___________________ _______________________ _____________________ ___________________ ______________________

___________________ _______________________ _____________________ ___________________ ______________________

___________________ $______________________ $_____________________ $___________________ ______________________

(b)Should Kajsa have been reprimanded?

Kajsa

should not OR should ?