As sales manager, Linda Williams was given the following static budget report for selling expenses in the clothing department of Cullumber Company for the month of October CULLUMBER COMPANY Clothing Department Budget Report Difference Favourable Unfavourable Neither Favourable nor Unfavourable 600 Favourable Budget 8,400 Actual 9,000 $2.352 1,008 3,696 1.512 8,568 $2,160 720 3,600 1,080 7,560 $192 Favourable 288 Favourable 96 Favourable 432 Favourable 1,008 Favourable Sales in units Variable costs Sales commissions 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 costs 1.100 1,200 700 400 3,400 $11.968 1.100 1,200 700 400 3,400 $10.960 -O- Neither Favourable nor Unfavourable -O- Neither Favourable nor Unfavourable -O- Neither Favourable nor Unfavourable -O- Neither Favourable nor Unfavourable -O- Neither Favourable nor Unfavourable $1,008 Favourable As a result of this budget report, Linda 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 Linda. (List variable costs before fixed costs.) CULLUMBER COMPANY Selling Expense Flexible Budget Report Clothing Department Budget Actual $ $ $ $ CULLUMBER COMPANY Expense Flexible Budget Report Clothing Department Difference Favourable Unfavourable Neither Favourable nor Unfavourable Actual $