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 7,900 11,000 3,100 Favorable Variable expenses Sales commissions $2,054 $2,860 $806 Unfavorable Advertising expense 869 770 99 Favorable Travel expense 3,476 4,950 1.474 Unfavorable Free samples given out 1,659 1.210 449 Favorable Total variable 8,058 9.790 1,732 Unfavorable Fixed expenses Rent 1.900 1,900 Sales salaries 1.100 1,100 Office salaries 600 800 Depreciation-autos (sales staff 600 600 Total fixed 4.4400 4400 Total expenses $12.458 $14.190 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0-Neither Favorable nor Unfavorable $1732 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 Budget S Actual S 5 > A A