Exercise 24-9 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, 2017 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 8,500 9,000 500 Favorable Variable expenses Sales commissions $2,210 $2,160 $50 Favorable Advertising expense 935 900 35 Favorable Travel expense 3,740 3,600 140 Favorable Free samples given out 2,040 990 1,050 Favorable Total variable 8,925 7,650 1,275 Favorable Fixed expenses Rent 1,900 1,900 -O-Neither Favorable nor Unfavorable Sales salaries 1,100 1,100 -O-Neither Favorable nor Unfavorable Office salaries 900 900 -0-Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 600 600 -- Neither Favorable nor Unfavorable Total fixed 4,500 4,500 -0- Neither Favorable nor Unfavorable Total expenses $13,425 $12,150 $1,275 Favorable 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. Do not leave any answer field blank. Enter o for amounts.) SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget