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As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Ayayai Company for the month of October.

Ayayai Company Clothing Department Budget Report For the Month Ended October 31, 2017
					Difference
	Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
Sales in units	7,500		11,000		3,500	Favorable
Variable expenses
Sales commissions	$1,950		$2,970		$1,020	Unfavorable
Advertising expense	975		1,210		235	Unfavorable
Travel expense	3,600		3,850		250	Unfavorable
Free samples given out	1,200		1,540		340	Unfavorable
Total variable	7,725		9,570		1,845	Unfavorable
Fixed expenses
Rent	1,500		1,500		0	Neither Favorable nor Unfavorable
Sales salaries	1,300		1,300		0	Neither Favorable nor Unfavorable
Office salaries	900		900		0	Neither Favorable nor Unfavorable
Depreciationautos (sales staff)	600		600		0	Neither Favorable nor Unfavorable
Total fixed	4,300		4,300		0	Neither Favorable nor Unfavorable
Total expenses	$12,025		$13,870		$1,845	Unfavorable

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.)

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