Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sastotal bud budget grape (LO3), AP LIU-10 As sales manager, Joe Batista was given the following statie budget report for Prepare flexible selling expenses in

image text in transcribed
Sastotal bud budget grape (LO3), AP LIU-10 As sales manager, Joe Batista was given the following statie budget report for Prepare flexible selling expenses in the Clothing Department of Soria Company for the month of October Soria Company and answer queste Clothing Department (LO 2, 3). Budget Report For the Month Ended October 31, 2014 Difference Favorable F Budget Sales in units Actual Unfavorable U 8,000 10,000 Variable expenses 2,000 F Sales commissions $ 2,400 Advertising expense $ 2,600 $200 U 720 850 Travel expense 130 U 3,600 4.100 500 U Free samples given out 1,600 1,400 200 F Total variable 8,320 8,950 630 U Fixed expenses Rent 1,500 Sales salaries 1,200 Office salaries 800 Depreciation-autos (sales staff) 500 500 Total fixed 4,000 4,000 Total expenses $12,320 : $12,950 $ 630 V As a result of this budget report, Joe was called into the president's office and congratu- lated 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 Instructions (a) Prepare a budget report based on flexible budget data to help Joe. (b) Should Joe have been reprimanded? Explain. - domany specializing in plumb. Prepare and discuss a Preps TESP syst (LO Sastotal bud budget grape (LO3), AP LIU-10 As sales manager, Joe Batista was given the following statie budget report for Prepare flexible selling expenses in the Clothing Department of Soria Company for the month of October Soria Company and answer queste Clothing Department (LO 2, 3). Budget Report For the Month Ended October 31, 2014 Difference Favorable F Budget Sales in units Actual Unfavorable U 8,000 10,000 Variable expenses 2,000 F Sales commissions $ 2,400 Advertising expense $ 2,600 $200 U 720 850 Travel expense 130 U 3,600 4.100 500 U Free samples given out 1,600 1,400 200 F Total variable 8,320 8,950 630 U Fixed expenses Rent 1,500 Sales salaries 1,200 Office salaries 800 Depreciation-autos (sales staff) 500 500 Total fixed 4,000 4,000 Total expenses $12,320 : $12,950 $ 630 V As a result of this budget report, Joe was called into the president's office and congratu- lated 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 Instructions (a) Prepare a budget report based on flexible budget data to help Joe. (b) Should Joe have been reprimanded? Explain. - domany specializing in plumb. Prepare and discuss a Preps TESP syst (LO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Beginners

Authors: Neel Gaines

1st Edition

1801120897, 978-1801120890

More Books

Students also viewed these Accounting questions

Question

Know the key issues in ERP implementation strategy

Answered: 1 week ago

Question

Discuss global compensation practices.

Answered: 1 week ago

Question

Summarize global staffing practices.

Answered: 1 week ago

Question

Discuss the evolution of global business.

Answered: 1 week ago