Exercise 23-09 a As sales manager, Joe Batista was glven the following static budget report for selling expenses in the Clothing Department of Sorla Company for the month of October SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable 7.900 Sales in units 9,000 1,100 Favorable Variable expenses Sales commissions $1,896 S2,430 $534 Unfavorable Advertising expense 1,106 630 4/6 Favorable Travel expense 3,318 3,150 168 Favorable Free samples given out 1,195 990 195 Favorable Total variable 7,505 7,200 305 Favorable Fixed expenses Rent 1,200 1,200 0 Neither Favorable nor Unfavorable Sales salaries 1,000 1,000 -0- Neither Favorablc nor Unfavorable Office salaries 700 700 -D-Neith Favorable nor Unfavorable Depreciation-auts (les stalt) 400 400 -D-Neither Favorable nic Unravorable Total fixed 1,300 1,300 -0-Neither favorable nor Unfavorable Total cxpenses $10,805 $10.500 $305 Favure 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.) SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual $