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, 2020

Difference

Budget

Actual

Favorable

Unfavorable

Neither Favorable

nor Unfavorable

Sales in units8,100

9,000

900

FavorableVariable expensesSales commissions$1,620

$2,250

$630

UnfavorableAdvertising expense810

720

90

FavorableTravel expense3,888

3,600

288

FavorableFree samples given out1,782

990

792

FavorableTotal variable8,100

7,560

540

FavorableFixed expensesRent1,500

1,500

-0-

Neither Favorable nor UnfavorableSales salaries1,300

1,300

-0-

Neither Favorable nor UnfavorableOffice salaries600

600

-0-

Neither Favorable nor UnfavorableDepreciationautos (sales staff)500

500

-0-

Neither Favorable nor UnfavorableTotal fixed3,900

3,900

-0-

Neither Favorable nor UnfavorableTotal expenses$12,000

$11,460

$540

Favorable

As a result of this budget report,Joewas called into the president's 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.)