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 8,500 11.000 2,500 Favourable $2,210 $2,640 935 1.100 Sales in units Variable costs Sales commissions Advertising expense Travel expense Free samples given out Total variable costs $430 Unfavourable 165 Unfavourable 660 Unfavourable 830 Favourable 3,740 4,400 2,040 1.210 8.925 9.350 425 Unfavourable Sales commissions $2,210 $2,640 $430 Unfavourable 935 1.100 165 Unfavourable 3,740 4,400 660 Unfavourable 830 Favourable 2,040 1,210 8.925 9,350 425 Unfavourable Advertising expense Travel expense Free samples given out Total variable costs Fixed costs Rent Sales salaries Office salaries Depreciation-vehicles (sales staff) Total fixed costs Total cost 1,900 1.900 -0- Neither Favourable nor Unfavourable 1,100 1.100 -O- Neither Favourable nor Unfavourable 900 900 600 600 -0. Neither Favourable nor Unfavourable -0. Neither Favourable nor Unfavourable --0- Neither Favourable nor Unfavourable 4,500 4,500 $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 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.) 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 Budget Nei ng Actual Total Fixed Costs Total Variati Costs Fixed Costs Depreciation-Sale Statt Autos Travel Expense Rent Free Samples Office Salaries Variable costs Sales In Units Total Costs Advertising Expense Sales Commissions Sales Salaries DUNHAM COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favourable Unfavourable Neither Favourable nor Unfavourable Budget Actual Nolther Favourable nor Unfavourable Favourable Unfavourable Free Samples Advertising Expense Office Salaries Rent Variable costs Sales Commissions Total Costs Travel Expense Sales Salaries Depreciation-Sale Statt Autos Total Fixed Costs Sales in Units Total Variable costs Fixed Costs $ s (6) Should Kajsa have been reprimanded? Kajs have been reprimanded should not should e Textbook and Media
