SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020
					Difference
	Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
Sales in units	8,300		11,000		2,700	Favorable
Variable expenses
Sales commissions	$1,992		$2,860		$868	Unfavorable
Advertising expense	830		1,210		380	Unfavorable
Travel expense	3,320		3,850		530	Unfavorable
Free samples given out	1,992		1,430		562	Favorable
Total variable	8,134		9,350		1,216	Unfavorable
Fixed expenses
Rent	1,100		1,100		0	Neither Favorable nor Unfavorable
Sales salaries	1,200		1,200		0	Neither Favorable nor Unfavorable
Office salaries	900		900		0	Neither Favorable nor Unfavorable
Depreciationautos (sales staff)	400		400		0	Neither Favorable nor Unfavorable
Total fixed	3,600		3,600		0	Neither Favorable nor Unfavorable
Total expenses	$11,734		$12,950		$1,216	Unfavorable

As a result of this budget report, Joe was called into the presidents 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 Difference Favorable Neither Favorable Budget Actual nor Unfavorable Sales in Units 8,300 11,000 Variable Expenses Sales Commissions 1,992 2,860 868 Unfavorable Advertising Expense 830 1,210 380 Unfavorable Travel Expense 3,320 3,850 Free Samples 1,992 1,430 562 Favorable Total Variable Expenses 8,134 9,350 1,216 Unfavorable Fixed Expenses Rent 1,100 1,100 0 Neither Favorable nor Unfavorable Sales Salaries 1,200 1,200 0 Neither Favorable nor Unfavorable Office Salaries 900 900 0 Neither Favorable nor Unfavorable Sale Staff Autos 400 400 0 Neither Favorable nor Unfavorable Total Fixed Expenses 3,600 3,600 0 Neither Favorable nor Unfavorable Total Expenses 11,734 12,950 1,216 Unfavorable