Exercise 23-09 a Your answer is partially correct. Try again. 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, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 7,800 10,000 2,200 Favorable Variable expenses Sales commissions $1,872 $2,400 $528 Unfavorable 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 Rent 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-autos (sales staff) 400 400 -O-Neither Favorable nor Unfavorable Total fixed 4,000 4,000 -O-Neither Favorable nor Unfavorable Total expenses $11,722 $12,600 $878 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. 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 X X 7,800 10,000 Sales in Units Variable Expenses X Sales Commissions Neither Favorable nor Unfavorable x Advertising Expense Favorable X Travel Expense Neither Favorable nor Unfavorable Free Samples Favorable X Total Variable Expenses Favorable Fixed Expenses M Rent Neither Favorable nor Unfavorable X Sales Salaries Neither Favorable nor Unfavorable x M Office Salaries Neither Favorable nor Unfavorable X Depreciation-Sale Staff Autos Neither Favorable nor Unfavorable X Total Fixed Expenses Neither Favorable nor Unfavorable X Total Expenses Favorable