Exercise 10-9 a As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October. SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 7,700 11,000 3,300 Favorable Variable expenses Sales commissions $1,848 $2,860 $1,012 Unfavorable Advertising expense 1,078 990 88 Favorable Travel expense 3,696 3,850 154 Unfavorable Free samples given out 1,540 1,210 330 Favorable Total variable 8,162 8,910 748 Unfavorable Fixed expenses Rent 1,100 1,100 -0- Neither Favorable nor Unfavorable Sales salaries 1,000 1,000 -0- Neither Favorable nor Unfavorable Office salaries 600 600 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 600 600 -0- Neither Favorable nor Unfavorable Total fixed 3,300 3,300 -0-Neither Favorable nor Unfavorable Total expenses $11,462 $12,210 $748 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.) SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Depreciation-Sale Staff Autos Sales in Units Fixed Expenses $ $ Total Expenses Rent Total Fixed Expenses Sales Salaries Total Variable Expenses Free Samples Variable Expenses Travel Expense Advertising Expense Office Salaries Sales Commissions