Exercise 23-09 a As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Waterway Company for the month of October. WATERWAY COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 8,100 10,000 1,900 Favorable Variable expenses Sales commissions $1,944 $2,700 $756 Unfavorable Advertising expense 972 700 272 Favorable Travel expense 3,240 4,000 760 Unfavorable Free samples given out 1,458 1,400 58 Favorable Total variable 7,614 8,800 1,186 Unfavorable Fixed expenses Rent 1,900 1.900 -- Neither Favorable nor Unfavorable Sales salaries 1,400 1,400 -0-Neither Favorable nor Unfavorable office salaries 800 800 -D-Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 400 400 -0- Neither Favorable nor Unfavorable Total fixed 4,500 4,500 -0- Neither Favorable nor Unfavorable Total expenses $12,114 513,300 $1,186 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.) WATERWAY COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual $ $ > > >