Question 1 **/3.5 View Policies Current Attempt In Progress 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 nor Unfavorable Budget Actual Sales in units 8,200 11,000 2,800 Favorable Variable expenses Sales commissions $2,750 $946 Unfavorable $1,804 820 Advertising expense 990 170 Unfavorable Travel expense 3,772 4.950 1.178 Unfavorable Free samples given out 1,968 1,320 648 Favorable Total variable 8,364 10,010 1.646 Unfavorable Sales In units 8,200 11,000 2,800 Favorable Variable expenses Sales commissions $1,804 $2.750 $946 Unfavorable Advertising expense 820 990 Travel expense Free samples given out 3,772 1.968 4.950 1,320 170 Unfavorable 1,178 Unfavorable 648 Favorable 1,646 Unfavorable Total variable 8,364 10,010 Fixed expenses Rent 1,300 1,300 Sales salaries O-Neither Favorable nor Unfavorable O-Neither Favorable nor Unfavorable 1,300 1,300 Office salaries 800 800 - Neither Favorable nor Unfavorable Depreciation-autossales star 400 400 O-Neither Favorable nor Unfavorable Total fixed 3.800 3,800 -- Neither Favorable nor Unfavorable $12,164 $13,810 $1,646 Unfavorable Total expenses 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.)