DUNHAM COMPANY Clothing Department Budget Report Month Ended October 31, 2020 Difference Favourable Unfavourable Neither Favourable nor Unfavourable Budget Actual 7,600 9,000 1,400 Favourable $1,672 $2,520 $848 Unfavourable 836 630 206 Favourable Sales in units Variable costs Sales commissions Advertising expense Travel expense Free samples given out Total variable costs Fixed costs 3,496 4,050 554 Unfavourable 1,140 1,170 30 Unfavourable 7,144 8,370 1.226 Unfavourable Fixed costs 1,700 1,700 -O- Neither Favourable nor Unfavourable 1,200 1,200 700 700 Rent Sales salaries Office salaries Depreciation-vehicles (sales staff) Total fixed costs Total costs 400 400 -0- Neither Favourable nor Unfavourable -O- Neither Favourable nor Unfavourable -O- Neither Favourable nor Unfavourable -O- Neither Favourable nor Unfavourable $1,226 Unfavourable 4,000 4,000 $11,144 $12,370 As a result of this budget report, Kajsa was called into the president's office and congratulated on her fine sales performance. S reprimanded, however, for allowing her costs to get out of control. Kajsa knew something was wrong with the performance rep she had been given. However, she was not sure what to do and has come to you for advice. (a) Prepare a budget report based on flexible budget data to help Kajsa. (List variable costs before fixed costs.) DUNHAM COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Clothing Department For the Month Ended October 31, 2020 Budget Actual $ - . C 1 $ $ (b) Should Kajsa have been reprimanded? Kajsa have been reprimanded. e Textbook and Media