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 nor Unfavourable Budget Actual Sales in units 8,100 10,000 1,900 Favourable Variable costs Sales commissions Advertising expense $1,944 972 3,240 $2,700 200 4,000 $756 Unfavourable 272 Favourable 760 Unfavourable Travel expense Free samples given out 1,458 1,400 5 8 Favourable Total variable costs 7,614 8,800 1,186 Unfavourable Fixed costs Rent 1,900 1,900 -O- Neither Favourable nor Unfavourable Sales salaries 1,400 1,400 -O- Neither Favourable nor Unfavourable Office salaries 800 800 -O- Neither Favourable nor Unfavourable Depreciation-vehicles (sales staff) 400 400 -O- Neither Favourable nor Unfavourable Total fixed costs 4,500 4,500 -O- Neither Favourable nor Unfavourable Total costs $12,114 $13,300 $1,186 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 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.) DUNHAM COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 DUNHAM COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Dif Fay Unfa Neither nor Un Budget Actual $ $ $ Total Variable Costs Free Samples Office Salaries Rent Total Fixed Costs Fixed Costs Sales Salaries Sales in Units Advertising Expense Total Costs Depreciation-Sale Staff Autos Travel Expense Sales Commissions Variable Costs DUIVAAM LUMPAINT Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favourable Unfavourable Neither Favourable nor Unfavourable Budget Actual $ $ $ Unfavourable Neither Favourable nor Unfavourable Favourable (b) Should Kaica havo heen reprimanded? should should not Kajsa have been reprimanded