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 3, 2017 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable 7,800 0,000 2,200 Favorable Sales in units Variable expenses $1,872 $2,400 $528 Unfavorable Sales commissions Advertising expense 936 900 36 Favorable Travel expense 3,120 4,000 880 Unfavorable Free samples given out 1,794 1,300 494 Favorable Total variable 7,722 8,600 878 Unfavorable Fixed expenses 1,700 1,700 0- Neither Favorable nor Unfavorable Sales salaries 1,100 1,100 -0- Neither Favorable nor Unfavorable Office salaries 800 800 -0- Neither Favorable nor Unfavorable Depreciation (sales sta 400 400 0- Neither Favorable nor Unfavorable Total fixed 4,000 4,000 0- Neither Favorable nor Unfavorable $11,722 12,600 $878 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