SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2017 Difference Favorable F Unfavorable U 2,000 F Budget 8,000 Actual 10,000 Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out 2,4002,600 850 4,100 1,400 8,950 720 3,600 1,600 8,320 $200 U 130 U 500 U 200 F 630 U Total variable Fixed expenses 1,500 1,200 800 1,500 1,200 800 500 Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed 4,000 Total expenses $12.320 $12,950$630 1 As a result of this budget report, Joe was called into the president's office and congratu lated on his fine sales performance. He was reprimanded, however, for allowing his cost to get out of control. Joe knew something was wrong with the performance report t had hat he been given. However, he was not sure what to do, and comes to you for advice. Instructions (a) Prepare a budget report based on flexible budget data to help Joe. (b) Should Joe have been reprimanded? Explain. Dranare lavible hudoet and