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 8,300 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 -O- Neither Favorable nor Unfavorable Sales salaries 1,200 1,200 -O- Neither Favorable nor Unfavorable Office salaries 900 900 -O- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 400 400 -O- 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 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 Actual Sales in Units Variable Expenses Sales Commissions $ Advertising Expense Free Samples