NEXT Exercise 23-09 b (Essay) 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 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 720 850 130 Unfavorable Travel expense 3,600 4,100 500 Unfavorable Free samples given out 1,600 1,400 200 Favorable Total variable 8,320 8,950 630 Unfavorable Fixed expenses Rent 1,500 1,500 -0- Sales salaries 1,200 1,200 -0- Office salaries 800 800 -0- Depreciation-autos (sales staff) 500 500 -0- Total fixed 4,000 4,000 -0- Total expenses $12,320 $12,950 $630 Unfavorable As a result of this budget report, Joe was called into the president's office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Joe knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice. SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Budget Favorable F Unfavorable U Actual 10,000 10,000 Sales in units Variable expenses Sales commissions ($.30) Advertising expense ($.09) Travel expense ($.45) Free samples ($.20) Total variable expenses ($1.04) Fixed expenses Rent Sales salaries Office salaries Depreciation--sale staff autos Total fixed expenses $3,000 900 4,500 2,000 10,400 $2,600 850 4,100 1,400 8,950 $400 F 50 F 400 F 600 F 450 1,500 1,200 800 500 4,000 $14,400 1,500 1,200 800 500 4,000 $12,950 Total expenses $1,450 F Should Joe have been reprimanded? Explain. Click if you would like to Show Work for this question: Open Show Work