UUUUU As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2014 Difference Favorable (F) Unfavorable (0) Neither Favorable nor tulavorable Budget Actual Sales in units 7.900 10.500 2.600 Variable expenses Sales commissions $2,054 $2,835 $781 U Advertising expense 700 735 55 F Travel expense 3.397 3,885 ABRU Free samples given out 1,738 1.365 Total variable 7,979 8,820 841 Fixed expenses Rent 1,000 1,900 -O-N Sales salaries 1,000 1,000 -O-N Office salaries 800 800 -0-N Depreciation autos (sales 500 500 --0-N stalt) Total fixed 4,200 4.200 -O-N Total expenses $12.179 $13.020 $841 373F 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 is 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, 2014 Diference Favorable Unfavorable (0) Neither favorable nor Unfavorable (N) Budget Innan