Exercise 10-9 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, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual 7,500 10,000 2,500 Favorable Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out $1,950 $2,500 $550 Unfavorable 1,050 900 150 Favorable 3,000 4,500 1,500 Unfavorable 1,125 1,100 7,125 9,000 1,875 Unfavorable 25 Favorable Total variable Fixed expenses Rent Sales salaries Office salaries 1,800 1,800 -0- Neither Favorable nor Unfavorable 1,200 1,200 -0- Neither Favorable nor Unfavorable 700 0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 600 600 0- Neither Favorable nor Unfavorable 0- Neither Favorable nor Unfavorable 700 Total fixed $11,425 $13,300 $1,875 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. Do not leave any answer field blank. Enter O for amounts.) SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual