Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 7,800 10,000 2,200 Favorable Variable expenses Sales commissions $2,184 $2,400 $216 Unfavorable Advertising expense 1,092 1.000 92 Favorable Travel expense 3,432 4,500 1.068 Unfavorable Free samples given out 1,560 1,100 460 Favorable Total variable 8,268 9,000 732 Unfavorable Fixed expenses Rent 1,700 1,700 -- Neither Favorable nor Unfavorable Sales salaries 1,400 1,400 -0- Neither Favorable nor Unfavorable Office salaries 600 600 -0- Neither Favorable nor Unfavorable Depreciation--autos (sales staff 600 600 -O- Neither Favorable nor Unfavorable Total fixed 4.300 4,300 -- Neither Favorable nor Unfavorable Total expenses $12,568 $13,300 $732 Unfavorable As a result of this budget report, Joe was 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. Joe 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