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1. As sales manager, Donald Martin was given the following static budget report for selling expenses in the Clothing Department of Ivanhoe Company for the month of October.

Ivanhoe Company Clothing Department Budget Report For the Month Ended October 31, 2022
					Difference
	Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
Sales in units	8,500		10,000		1,500	Favorable
Variable expenses
Sales commissions	$2,380		$2,600		$220	Unfavorable
Advertising expense	850		900		50	Unfavorable
Travel expense	3,910		3,500		410	Favorable
Free samples given out	1,615		1,100		515	Favorable
Total variable	8,755		8,100		655	Favorable
Fixed expenses
Rent	1,700		1,700		0	Neither Favorable nor Unfavorable
Sales salaries	1,000		1,000		0	Neither Favorable nor Unfavorable
Office salaries	600		600		0	Neither Favorable nor Unfavorable
Depreciationautos (sales staff)	500		500		0	Neither Favorable nor Unfavorable
Total fixed	3,800		3,800		0	Neither Favorable nor Unfavorable
Total expenses	$12,555		$11,900		$655	Favorable

As a result of this budget report, Donald was called into the presidents office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Donald 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 Donald. (List variable costs before fixed costs.)

2. In the Assembly Department of Cullumber Company, budgeted and actual manufacturing overhead costs for the month of April 2022 were as follows.

		Budget		Actual
Indirect materials		$14,800		$14,000
Indirect labor		21,700		22,300
Utilities		10,900		11,400
Supervision		4,400		4,400

All costs are controllable by the department manager. Prepare a responsibility report for April for the cost center.

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