As sales manager,Joe Batistawas given the following static budget report for selling expenses in the Clothing Department ofSoriaCompany for the month of October.

SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2014
Difference
Budget	Actual	Favorable (F) Unfavorable (U) Neither Favorable nor Unfavorable (N)
Sales in units	7,500	9,400	1,900	F
Variable expenses
Sales commissions	$2,025	$2,444	$419	U
Advertising expense	825	658	167	F
Travel expense	3,375	3,760	385	U
Free samples given out	1,800	1,410	390	F
Total variable	8,025	8,272	247	U
Fixed expenses
Rent	1,000	1,000	0	N
Sales salaries	1,100	1,100	0	N
Office salaries	900	900	0	N
Depreciationautos (sales staff)	500	500	0	N
Total fixed	3,500	3,500	0	N
Total expenses	$11,525	$11,772	$247	U

As a result of this budget report,Joewas 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.Joeknew 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.

Prepare a budget report based on flexible budget data to helpJoe.(List variable costs before fixed costs.)

SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2014
Difference
Budget	Actual	Favorable (F) Unfavorable (U) Neither Favorable nor Unfavorable (N)
Fixed ExpensesTotal ExpensesFree SamplesTotal Fixed ExpensesOffice SalariesTotal Variable ExpensesVariable ExpensesRentSales CommissionsSales in UnitsAdvertising ExpenseSales SalariesTravel ExpenseDepreciationSale Staff Autos
Free SamplesDepreciationSale Staff AutosTotal Fixed ExpensesTotal ExpensesFixed ExpensesOffice SalariesTotal Variable ExpensesSales CommissionsTravel ExpenseVariable ExpensesRentAdvertising ExpenseSales in UnitsSales Salaries
Sales CommissionsSales in UnitsVariable ExpensesSales SalariesAdvertising ExpenseDepreciationSale Staff AutosTotal ExpensesTotal Variable ExpensesRentFixed ExpensesTotal Fixed ExpensesFree SamplesOffice SalariesTravel Expense	$	$	$	UNF
Sales SalariesFixed ExpensesOffice SalariesDepreciationSale Staff AutosTotal ExpensesRentFree SamplesSales CommissionsSales in UnitsTotal Fixed ExpensesTotal Variable ExpensesTravel ExpenseVariable ExpensesAdvertising Expense				UNF
Free SamplesSales in UnitsTotal ExpensesSales SalariesTotal Fixed ExpensesTotal Variable ExpensesOffice SalariesTravel ExpenseRentVariable ExpensesDepreciationSale Staff AutosSales CommissionsFixed ExpensesAdvertising Expense				NFU
Total Variable ExpensesFree SamplesSales CommissionsTotal Fixed ExpensesOffice SalariesTravel ExpenseVariable ExpensesRentAdvertising ExpenseDepreciationSale Staff AutosFixed ExpensesSales in UnitsSales SalariesTotal Expenses				FUN
Sales SalariesTotal Variable ExpensesVariable ExpensesTotal ExpensesFixed ExpensesOffice SalariesDepreciationSale Staff AutosSales in UnitsFree SamplesSales CommissionsTotal Fixed ExpensesTravel ExpenseRentAdvertising Expense				FUN
Total Fixed ExpensesFree SamplesVariable ExpensesSales CommissionsTotal Variable ExpensesAdvertising ExpenseFixed ExpensesTravel ExpenseRentDepreciationSale Staff AutosOffice SalariesSales in UnitsTotal ExpensesSales Salaries
Total ExpensesVariable ExpensesSales CommissionsRentSales in UnitsSales SalariesTotal Fixed ExpensesAdvertising ExpenseTravel ExpenseTotal Variable ExpensesOffice SalariesDepreciationSale Staff AutosFixed ExpensesFree Samples				UFN
Advertising ExpenseSales in UnitsFree SamplesOffice SalariesRentVariable ExpensesSales CommissionsTravel ExpenseFixed ExpensesSales SalariesTotal ExpensesTotal Fixed ExpensesTotal Variable ExpensesDepreciationSale Staff Autos				UFN
Total ExpensesAdvertising ExpenseSales in UnitsRentSales SalariesTotal Fixed ExpensesTotal Variable ExpensesTravel ExpenseSales CommissionsFixed ExpensesVariable ExpensesFree SamplesDepreciationSale Staff AutosOffice Salaries				UNF
Travel ExpenseSales SalariesVariable ExpensesAdvertising ExpenseDepreciationSale Staff AutosFixed ExpensesFree SamplesTotal ExpensesTotal Fixed ExpensesRentOffice SalariesSales CommissionsSales in UnitsTotal Variable Expenses				FUN
Free SamplesSales SalariesTotal ExpensesTotal Fixed ExpensesSales in UnitsAdvertising ExpenseFixed ExpensesTotal Variable ExpensesDepreciationSale Staff AutosTravel ExpenseVariable ExpensesOffice SalariesRentSales Commissions				NUF
Fixed ExpensesAdvertising ExpenseOffice SalariesTotal ExpensesSales CommissionsFree SamplesRentSales in UnitsVariable ExpensesSales SalariesTotal Variable ExpensesDepreciationSale Staff AutosTotal Fixed ExpensesTravel Expense	$	$	$	UFN