As sales manager, Sharon Lee was given the following static budget report for selling expenses in the clothing department of Carla Vista Company for the month of October. Sales in units Variable costs Sales commissions Advertising expense CARLA VISTA COMPANY Clothing Department Budget Report Budget 8,200 $1,804 820 Actual 11,000 $2,750 990 Difference Favourable Unfavourable Neither Favourable nor Unfavourable 2,800 Favourable $946 Unfavourable 170 Unfavourable

As sales manager, Sharon Lee was given the following static budget report for selling expenses in the clothing department of Carla Vista Comparry for the month of October. As a result of this budget report, Sharon was called into the president's office and congratulated on her fine saies performance. She was reprisnanded, 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 belp Sharon, (List variable costs before fixed costs) CARLA VISTA COMPANY Selling Expense Flexible Budget Report Clothing Department Budget Actual 5 $ (b) Should Sharon have been reprimanded? Sharon have been reprimanded