As sales manager, Terry Dewitt was given the following static budget report for selling expenses in the Clothing Department of Garber Company for the month of October.

Instructions(a) Prepare a responsibility report for the first quarter of 2010 for the Home Plumbing Services segment.(b) Write a memo to Paul Pronto discussing the principles that should be used when preparing performancereports.

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GARBER COMPANY Clothing Department Selling Expense Budget Report For the Month Ended October 31, 2010 Difference Favorable F Budget Actual Unfavorable U Sales in units 8,000 10,000 2,000 F Variable expenses Sales commissions $ 2,000 $ 2,600 $ 600 U 50 U Advertising expense. Travel expense Free samples given out 800 850 3,600 4,000 400 U 1,600 1,300 300 F 8,000 Total variable 8,750 750 U Fixed expenses Rent 1,500 1,500 -0- Sales salaries 1,200 1,200 Office salaries 800 800 500 Depreciation-autos (sales staff) 500 Total fixed 4,000 4,000 $ 750 U Total expenses $12,000 $12,750 부쉬비치