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 7,500 11,000 3,500 Favorable Variable expenses Sales commissions $1,800 $3,080 $1,280 Unfavorable Advertising expense 1,050 990 60 Favorable Travel expense 3,300 4,950 1,650 Unfavorable Free samples given out 1,275 1,540 265 Unfavorable Total variable 7,425 10,560 3,135 Unfavorable Fixed expenses Rent 1,600 1,600 -O- Neither Favorable nor Unfavorable Sales salaries 1,100 1,100 -O- Neither Favorable nor Unfavorable Office salaries 900 900 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 600 600 -0- Neither Favorable nor Unfavorable Total fixed 4,200 4,200 -O- Neither Favorable nor Unfavorable Total expenses $11,625 $14,760 $3,135 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. SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual 114 ull