As sales manager, Sarah Allen was given the following static budget report for selling expenses in the clothing department of Blossom Company for the month of October. BLOSSOM COMPANY Clothing Department Budget Report Difference Favourable Unfavourable Neither Favourable nor Unfavourable Budget Actual Sales in units 7,500 11,000 3,500 Favourable Variable costs Sales commissions $1,950 $2,970 $1,020 Unfavourable Advertising expense 975 1,210 235 Unfavourable Travel expense 3,600 3,850 250 Unfavourable Free samples given out 1,200 1,540 340 Unfavourable Total variable costs 7,725 9,570 1,845 Unfavourable Fixed costs Rent 1,500 1,500 -O- Neither Favourable nor Unfavourable Sales salaries 1,300 1,300 -O- Neither Favourable nor Unfavourable Office salaries 900 900 -O- Neither Favourable nor Unfavourable Depreciation-vehicles (sales staff) 600 600 -O- Neither Favourable nor Unfavourable Total fixed costs 4,300 4,300 -O- Neither Favourable nor Unfavourable Total costs $12,025 $13,870 $1,845 Unfavourable As a result of this budget report, Sarah 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 Sarah. (List variable costs before fixed costs.) BLOSSOM COMPANY Selling Expense Flexible Budget Report Clothing Department V Nei Budget Actual nc $ $ $ $ $ (b) Should Sarah have been reprimanded? Kajsa have been reprimanded. BLOSSOM COMPANY Selling Expense Flexible Budget Report Clothing Department Difference Favourable Unfavourable Neither Favourable nor Unfavourable Actual $ $