Clothing Department Budget Report For the Month Ended October 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 8,100 10,000 1,900 Favorable Variable expenses Sales commissions $1,944 $2,700 $756 Unfavorable Advertising expense 972 700 272 Favorable Travel expense 3.240 4,000 760 Unfavorable Free samples given out 1,458 1,400 58 Favorable Total variable 7,614 8,800 1,186 Unfavorable Fixed expenses Rent 1,900 1,900 -O- Neither Favorable nor Unfavorable 1,400 1,400 Sales salaries Office salaries -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable 800 800 Depreciation-autos (sales staff) 400 400 -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable Total fixed 4,500 4,500 Total expenses $12,114 $13,300 $1,186 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. Prepare a budget report based on flexible budget data to help Joe. (List variable costs before fixed costs. Do not leave any answer field blank. Enter O for amounts.) SORIA MPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2017 N Budget Actual r Sales Salaries Variable Costs