MONTY COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 7,840 9,800 1,960 Favorable $2,352 $2.548 $196 Unfavorable 784 833 49 Unfavorable Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable 3,528 4,018 490 Unfavorable 1,568 1,372 196 Favorable 8,232 8.771 539 Unfavorable Fixed expenses Rent 1,470 1.470 Sales salaries 1,176 1,176 -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Office salaries 784 784 Depreciation-autos (sales staff) 490 490 Total fixed 3.920 3.920 -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $539 Unfavorable Total expenses $12.152 $12.691 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. (a) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses.) MONTY COMPANY Selling Expense Flexible Budget Report Clothing Department Ne no Budget Actual 3 $ S $ (b) Should Joe have been reprimanded