- As Sales Manager Kajsa Keyser Was Given The Following Static Budget Report For Selling Expenses In The Clothing Departm 1 (39.97 KiB) Viewed 42 times
As sales manager, Kajsa Keyser was given the following static budget report for selling expenses in the clothing department of Dunham
Company for the month of October. DUNHAM
COMPANY Clothing Department Budget Report Month Ended October 31, 2022 Difference Favourable Unfavourable Neither Favourable nor Unfavourable Budget Actual Sales in units 8,000 10,000 2,000 Favourable Variable costs Sales commissions $2,000 $2,700 $700 Unfavourable Advertising expense 800 900 100 Unfavourable Travel expense 2,400 2,600 200 Unfavourable Free samples given out 1,600 1,500 100 Favourable Total variable costs 6,800 7,700 900 Unfavourable Fixed costs Rent 1,500 1,500 -O- Neither Favourable nor Unfavourable Sales salaries 1,000 1,000 -0- Neither Favourable nor Unfavourable 800 800 Office salaries Depreciation-vehicles (sales staff) -0- Neither Favourable nor Unfavourable -O- Neither Favourable nor Unfavourable 500 500 Total fixed costs 3,800 3,800 -0- Neither Favourable nor Unfavourable Total costs $10,600 $11,500 $900 Unfavourable
As a result of this budget report, Kajsa was called into the president's office and congratulated on her fine sales performance. She was reprimanded, however, for allowing her costs to get out of control. Kajsa knew something was wrong with the performance report that she had been given. However, she was not sure what to do and has come to you for advice. (a) Prepare a budget report based on flexible budget data to help Kajsa. (List variable costs before fixed costs.) DUNHAM
COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2022 Budget Actual Sales in Units 10000 10000 > $ $ $ OLII IIIII IIII IIII ON
DUNHAM
COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2022 Difference Favourable Unfavourable Neither Favourable nor Unfavourable Budget Actual 10000 10000 $ $ 10 MUM $