Exercise 22-9 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 Budget Actual nor Unfavorable 7,500 10,000 2,500 Favorable Sales in units Variable expenses Sales commissions $1,950 $2,500 $550 Unfavorable Advertising expense 1,050 900 150 Favorable 3,000 4,500 1,500 Unfavorable Travel expense 1,125 1,100 25 Favorable Free samples given out 7,125 9,000 1,875 Unfavorable Total variable Fixed expenses Rent 1,800 1,800 -0- Neither Favorable nor Unfavorable Sales salaries 1,200 1,200 0- Neither Favorable nor Unfavorable Office salaries 700 7000 0- Neither Favorable nor Unfavorable Depreciation (sales staff) 600 600 0- Neither Favorable nor Unfavorable 4,300 4,300 0- Neither Favorable nor Unfavorable 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