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 units8,300

11,000

2,700

FavourableVariable costsSales commissions$1,992

$2,860

$868

UnfavourableAdvertising expense830

1,210

380

UnfavourableTravel expense3,320

3,850

530

UnfavourableFree samples given out1,992

1,430

562

FavourableTotal variable costs8,134

9,350

1,216

UnfavourableFixed costsRent1,100

1,100

-0-

Neither Favourable nor UnfavourableSales salaries1,200

1,200

-0-

Neither Favourable nor UnfavourableOffice salaries900

900

-0-

Neither Favourable nor UnfavourableDepreciationvehicles (sales staff)400

400

-0-

Neither Favourable nor UnfavourableTotal fixed costs3,600

3,600

-0-

Neither Favourable nor UnfavourableTotal costs$11,734

$12,950

$1,216

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 do a=nd has come to you for advice.

(a)Prepare 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