Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 7,700 11,000 3,300 Favorable Variable expenses Sales commissions $2.860 $1,012 Unfavorable Advertising expense $1,848 1,078 3.696 88 Favorable 990 3,850 Travel expense 154 Unfavorable Free samples given out 1,540 1.210 330 Favorable Total variable 8,162 8,910 748 Unfavorable Fixed expenses Rent 1,100 1,000 1,100 1,000 -O-Neither Favorable nor Unfavorable -- Neither Favorable nor Unfavorable Sales salaries Office salaries 600 600 -O-Neither Favorable nor Unfavorable Depreciation-autos (sales staff) Total fixed 3,300 3,300 $11,462 $12,210 -O-Neither Favorable nor Unfavorable -- Neither Favorable nor Unfavorable $748 Unfavorable Total expenses 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.) Unfavorable Neither Favorable nor Unfavorable Budget Actual