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 7,900 11,000 3,100 Favourable $1,896 Sales in units Variable costs Sales commissions Advertising expense Travel expense Free samples given out Total variable costs $2,970 770 1,106 3,318 1,185 3,850 $1,074 Unfavourable 336 Favourable 532 Unfavourable 25 Unfavourable 1,295 Unfavourable 1,210 8,800 7,505 Fixed costs 1,200 1,000 700 Rent Sales salaries Office salaries Depreciation-vehicles (sales staff) Total fixed costs Total costs 1,200 1,000 700 400 3,300 $12.100 -O- Neither Favourable nor Unfavourable -0 Neither Favourable nor Unfavourable -0 Neither Favourable nor Unfavourable -O- Neither Favourable nor Unfavourable -0 Neither Favourable nor Unfavourable $1,295 Unfavourable 400 3,300 $10,805 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 Difference Favourable Unfavourable Neither Favoural nor Unfavourab Budget Actual $ $ $ (b) Should Kajsa have been reprimanded? Kajsa have been reprimanded