SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 8,100 11,000 2,900 Favorable Variable expenses Sales commissions $2,268 $2,860 $592 Unfavorable Advertising expense 1,134 990 144 Favorable Travel expense 3,888 3,850 3 8 Favorable Free samples given out 1,782 1,320 462 Favorable Total variable 9,072 9,020 52 Favorable Fixed expenses Rent 2,000 2,000 -- Neither Favorable nor Unfavorable Sales salaries 1,100 1,100 -o-Neither Favorable nor Unfavorable Office salaries 700 700 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 500 500 --Neither Favorable nor Unfavorable Total fixed 4,300 4,300 -0- Neither Favorable nor Unfavorable Total expenses $13,372 $13,320 $52 Favorable 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.)