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Current Attempt in Progress As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Swifty Company for the month of October SWIFTY COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Nelther Favorable nor Unfavorable Budget Actual Sales in units 9,760 12,200 2.440 Favorable $2,928 $3,172 Variable expenses Sales commissions Advertising expense Travel expense Free samples given out 976 1,037 $244 Unfavorable 61 Unfavorable 610 Unfavorable 4,392 5,002 1.952 1.708 244 Favorable Total variable 10,248 10,919 671 Unfavorable Fixed expenses Rent 1,830 1,830 Sales salaries 1.464 1.464 -0- Neither Favorable nor Unfavorable -0. Neither Favorable nor Unfavorable -0. Neither Favorable nor Unfavorable Office salaries 976 976 9,760 12,200 2.440 Favorable Sales in units Variable expenses $2,928 $ $3,172 $244 Unfavorable 976 1,037 61 Unfavorable 4,392 5,002 Sales commissions Advertising expense Travel expense Free samples given out Total variable 610 Unfavorable 1,952 1,708 244 Favorable 10,248 10.919 671 Unfavorable Fixed expenses 1,830 1.830 Rent 1.464 1.464 Sales salaries 976 976 Office salaries -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable $671 Unfavorable 610 610 Depreciation-autos (sales staff) 4,880 4,880 Total fixed $15.128 $15.799 Total expenses 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. (a) Prepare a budget report based on flexible budget data to help Joe. (List varioble expenses before fixed expenses.) SWIFTY COMPANY Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses.) SWIFTY COMPANY Selling Expense Flexible Budget Report Clothing Department Budget Actual $ $ $ $ $ (6) Should Joe have been reprimanded? Tavil Mas Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses.) SWIFTY COMPANY Selling Expense Flexible Budget Report Clothing Department Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual S $ 2 $ > > C . $ (b) Should Joe have been reprimanded

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