As sales manager, Mark was given the following static budget report for selling expenses in the Winter Sports Department of BR Outdoor Company for the month of November. BR Outdoor Company Winter Sports Department Budget Report For the Month Ended November 30, 2020 Budget Actual Difference Favorable F Unfavorable U Sales in units 4,100 4,600 500 F Variable expenses Sales commissions $114,800 $121,900 $7,100 U Advertising expense 36,900 39,800 2,900 U Travel expense 184,500 200,400 15,900 U Demonstration models given out 94,300 84,100 10,200 F Total variable 430,500 446,200 15,700 U Fixed expenses Rent 7,200 7,200 -0- Sales salaries 59,800 59,800 -0- Office salaries 40,200 40,200 -0- Depreciation vans (sales staff) 2,400 2,800 * 400 U Total fixed 109,600 110,000 400 U Total expenses $540,100 $556,200 $16,100 U *The increase in depreciation was due to a new vehicle that had to be purchased as a result of an accident driving on snowy roads on the way to visit a customer. As a result of this budget report, Brian was called into the presidents office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Brian knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice.

(a) Prepare a budget report based on flexible budget data to help Mark