SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable 7.700 11,000 3,300 Favorable Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable Fixed expenses $1,848 924 3.542 1,848 8.162 $2.640 990 4,400 $792 Unfavorable 66 Unfavorable 858 Unfavorable 638 Favorable 1.078 Unfavorable 1.210 9.240 1,848 1.210 9,240 638 Favorable 1,078 Unfavorable 8,162 1.400 Free samples given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed Total expenses 1.000 900 400 3,700 $11.862 1,400 1,000 900 400 3.700 $12.940 -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0. Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $1.078 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 tha 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 Budget Actual A