Question 2 of 5 < > -/5 E As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Sori 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 7,800 10,000 2.200 Favorable Variable expenses Sales commissions $1,872 $2.400 $528 Unfavorable Advertising expense 936 900 36 Favorable Travel expense 3,120 4,000 880 Unfavorable Free samples given out 1,794 1,300 494 Favorable Sales in units 7,800 10,000 2,200 Favorable Variable expenses Sales commissions $1,872 $2,400 $528 Unfavorable Advertising expense 936 900 36 Favorable Travel expense 3,120 4,000 880 Unfavorable Free samples given out 1,794 1,300 494 Favorable Total variable 7,722 8,600 878 Unfavorable Fixed expenses Rent 1,700 1,700 Sales salaries 1,100 1,100 Office salaries 800 800 Depreciation-autos (sales staff) 400 400 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Total fixed 4,000 4,000 Total expenses $11,722 $12,600 -0- Neither Favorable nor Unfavorable $878 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.) SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Sales in Units Budget 10000 Actual 10000 D F Um Neith nor Sales in Units Variable Expenses Sales Commissions Advertising Expense Travel Expense Free Samples 6 SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Budget 10000 S Actual 10000 Neit nor Advertising Expense Travel Expense Free Samples Total Variable Expenses Fixed Expenses -15 E Rent Sales Salaries Office Salaries Depreciation-Sale Staff Autos Total Fixed Expenses Total Expenses 10000 Difference Favorable Unfavorable Neither Favorable nor Unfavorable EA Actual 10000 Difference Favorable Unfavorable Neither Favorable nor Unfavorable $ Neither Favorable nor Unfavorable Favorable Unfavorable