Answer Happy

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, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 8,400 9,000 600 Favorable Variable expenses Sales commissions $1,680 $2,430 $750 Unfavorable Advertising expense 1.176 810 366 Favorable Travel expense 4.032 3,150 882 Favorable Free samples given out 1,680 990 690 Favorable Total variable 8,568 7,380 1,188 Favorable Fixed expenses Rent 1,800 1,800 -0- Neither Favorable nor Unfavorable
Rent 1,800 1,800 -O- Neither Favorable nor Unfavorable Sales salaries 1,100 1,100 -O- Neither Favorable nor Unfavorable Office salaries 600 600 -O- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 500 500 -O- Neither Favorable nor Unfavorable Total fixed 4,000 4,000 -O- Neither Favorable nor Unfavorable Total expenses $12,568 $11,380 $1,188 Favorable 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. 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, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual $ $ $