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 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. 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 Sales in Units 10,0001 10,000 Variable Expenses 1 Sales Commissions 2400 2400 Neither Favorable nor Unfavorable v > Advertising Expense 1200 900 300 Favorable X Travel Expense 3,120 4,000 880 Neither Favorable nor Unfavorable x x Free Samples 2000 1,300 900 Favorable X Total Variable Expenses 10600 8,600 1600 Favorable Fixed Expenses Rent 1700 1700 Neither Favorable nor Unfavorable Sales Salaries 1,1001 1,1001 Neither Favorable nor Unfavorable v Office Salaries 800 800 Neither Favorable nor Unfavorable v Depreciation-Sale Staff Autos 400 400 Neither Favorable nor Unfavorable Total Fixed Expenses 4,000 4,000 Neither Favorable nor Unfavorable v x Total Expenses 12,600 12,600 Favorable Click if you would like to Show Work for this question: Open Show Work