Question 12 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 nor Unfavorable Budget Actual Sales in units 8,200 11,000 2,800 Favorable Variable expenses Sales commissions Advertising expense Travel expense Free samples given out $1,804 $2,750 $946 Unfavorable 990 170 Unfavorable 3,772 4,950 1,178 Unfavorable 820 1,968 1,320 648 Favorable Total variable 8,364 10,010 1,646 Unfavorable Fixed expenses Fixed expenses Rent Sales salaries Office salaries 1,300 1,300 -0 Neither Favorable nor Unfavorable 1,300 1,300 -0- Neither Favorable nor Unfavorable 800 800-0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff)400 400-0- Neither Favorable nor Unfavorable 3,800 3,800 -0- Neither Favorable nor Unfavorable Total fixed Total expenses $12,164 $13,810 $1,646 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. 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 for amounts.) SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2017 Unfavorable Neither Favorable nor Unfavorable Budget Actual