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As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of SoriaCompany for the month of October.As a result of this budget report, Joe 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. 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.)

Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Budget Actual 7,500 $1,500 750 3,000 1,125 6,375 Difference Favorable Unfavorable Neither Favorable nor Unfavorable 9,000 1,500 Favorable $2,160 $660 Unfavorable 630 120 Favorable 3,150 150 Unfavorable 990 135 Favorable 6,930 555 Unfavorable Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed Total expenses -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable 1,000 1,000 1,000 1,000 600 600 400 400 3,000 3,000 $9,375 $9,930 $555 Unfavorable # $ Budget SORIA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Actual $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable A A A

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