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

Budget

Actual

Favourable

Unfavourable

Neither Favourable

nor Unfavourable

Sales in units7,900

10,000

2,100

FavourableVariable costsSales commissions$1,896

$2,400

$504

UnfavourableAdvertising expense1,027

800

227

FavourableTravel expense3,160

4,500

1,340

UnfavourableFree samples given out1,185

1,300

115

UnfavourableTotal variable costs7,268

9,000

1,732

UnfavourableFixed costsRent1,200

1,200

-0-

Neither Favourable nor UnfavourableSales salaries1,400

1,400

-0-

Neither Favourable nor UnfavourableOffice salaries600

600

-0-

Neither Favourable nor UnfavourableDepreciationvehicles (sales staff)500

500

-0-

Neither Favourable nor UnfavourableTotal fixed costs3,700

3,700

-0-

Neither Favourable nor UnfavourableTotal costs$10,968

$12,700

$1,732

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 and has come to you for advice.

(a)Prepare budget report based on flexible budget data to help Kajsa