Exercise 23-09 b (Essay) As sales manager, Joe Batista was given the following static budget report for seling expenses in the Clothing Department of Sonia Company for the month of October SORIA COMPANY Clothing Department Badet krport For the Month Ended October 31, 2020 Difference Favorable Budget Actual Unfavorable Sales in units 8.000 10.000 2.000 Favorable Variable expenses Sales commissions $2.400 $2,600 $ 200 Unfavorable Advertising expense 720 850 330 Unfavorable Travel expense 3,600 4,100 500 Unfavorable Free samples given out 1.500 1,400 200 favorable Total variable 8,3208,950 630 Unfavorable Foed expenses Rent 1.500 1,500 -- Sales Sales 1.200 1.200 -- Office salaries 800 800-0- Depreciation Autos (sales staff) 500 - Total foed 4,000 4,000 -- Total expenses $12.320 $12.950 530 Unfavorable As a result of this budget report, Noe was called into the president's office and congratulated on his fine sales performance. He was reprimanded, however for allowing his costs to get out of control. Toe knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice. 500 SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favorable F Budget Actual Unfavorable U Sales in units 10,000 10,000 Variable expenses Sales commissions ($.30) $3,000 $2,600 $400 F Advertising expense ($.09) 900 850 50 F Travel expense (5.45) 4,500 4,100 400 F Free samples ($.20) 2,000 1,400 600 F Total variable expenses ($1.04) 10,400 8,950 1,450 Fixed expenses Rent 1,500 1,500 Sales salaries 1,200 1,200 Office salaries 800 800 Depreciation-sale staff autos 500 500 Total fixed expenses 4,000 4,000 0 Total expenses $14,400 $12,950 $1,450 F Should Joe have been reprimanded? Explain. Click if you would like to Show Work for this question: Open Show Work