Exercise 10-9 a

As sales manager,Joe Batistawas given the following static budget report for selling expenses in the Clothing Department ofSoriaCompany for the month of October.

SORIA COMPANY

Clothing Department

Budget Report

For the Month Ended October 31, 2020

Difference

Budget

Actual

Favorable

Unfavorable

Neither Favorable

nor Unfavorable

Sales in units8,000

10,000

2,000

FavorableVariable expensesSales commissions$2,400

$2,600

$200

UnfavorableAdvertising expense720

850

130

UnfavorableTravel expense3,600

4,100

500

UnfavorableFree samples given out1,600

1,400

200

FavorableTotal variable8,320

8,950

630

UnfavorableFixed expensesRent1,500

1,500

-0-

Neither Favorable nor UnfavorableSales salaries1,200

1,200

-0-

Neither Favorable nor UnfavorableOffice salaries800

800

-0-

Neither Favorable nor UnfavorableDepreciationautos (sales staff)500

500

-0-

Neither Favorable nor UnfavorableTotal fixed4,000

4,000

-0-

Neither Favorable nor UnfavorableTotal expenses$12,320

$12,950

$630

Unfavorable