As sales manager, Kajsa Keyser was given the following static budget report for selling expenses in...

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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, 2020 Difference Favourable Unfavourable Neither Favourable Budget Actual nor Unfavourable Sales in units 7,800 11,000 3,200 Favourable Variable costs Sales commissions $1,716 $2,640 $924 Unfavourable Advertising expense 780 1,100 320 Unfavourable Travel expense 3,744 4,950 1,206 Unfavourable Free samples given out 1,482 1,210 272 Favourable Total variable costs 7,722 9,900 2,178 Unfavourable Fixed costs Rent 1,700 1,700 -0- Neither Favourable nor Unfavourable Sales salaries 1,400 1,400 -0- Neither Favourable nor Unfavourable Office salaries -0- Neither Favourable nor Unfavourable 900 900 Depreciation-vehicles (sales staff) -0- Neither Favourable nor Unfavourable 600 600 Total fixed costs 4,600 -0- Neither Favourable nor Unfavourable 4,600 Total costs $12,322 $14,500 $2,178 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, 2020 Budget Actual %24 %24 > > > > > %24 $ 24 (b) Should Kajsa have been reprimanded? Kajsa should have been reprimanded. %24 > > > > > > > > > > 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, 2020 Difference Favourable Unfavourable Neither Favourable Budget Actual nor Unfavourable Sales in units 7,800 11,000 3,200 Favourable Variable costs Sales commissions $1,716 $2,640 $924 Unfavourable Advertising expense 780 1,100 320 Unfavourable Travel expense 3,744 4,950 1,206 Unfavourable Free samples given out 1,482 1,210 272 Favourable Total variable costs 7,722 9,900 2,178 Unfavourable Fixed costs Rent 1,700 1,700 -0- Neither Favourable nor Unfavourable Sales salaries 1,400 1,400 -0- Neither Favourable nor Unfavourable Office salaries -0- Neither Favourable nor Unfavourable 900 900 Depreciation-vehicles (sales staff) -0- Neither Favourable nor Unfavourable 600 600 Total fixed costs 4,600 -0- Neither Favourable nor Unfavourable 4,600 Total costs $12,322 $14,500 $2,178 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, 2020 Budget Actual %24 %24 > > > > > %24 $ 24 (b) Should Kajsa have been reprimanded? Kajsa should have been reprimanded. %24 > > > > > > > > > > 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, 2020 Difference Favourable Unfavourable Neither Favourable Budget Actual nor Unfavourable Sales in units 7,800 11,000 3,200 Favourable Variable costs Sales commissions $1,716 $2,640 $924 Unfavourable Advertising expense 780 1,100 320 Unfavourable Travel expense 3,744 4,950 1,206 Unfavourable Free samples given out 1,482 1,210 272 Favourable Total variable costs 7,722 9,900 2,178 Unfavourable Fixed costs Rent 1,700 1,700 -0- Neither Favourable nor Unfavourable Sales salaries 1,400 1,400 -0- Neither Favourable nor Unfavourable Office salaries -0- Neither Favourable nor Unfavourable 900 900 Depreciation-vehicles (sales staff) -0- Neither Favourable nor Unfavourable 600 600 Total fixed costs 4,600 -0- Neither Favourable nor Unfavourable 4,600 Total costs $12,322 $14,500 $2,178 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, 2020 Budget Actual %24 %24 > > > > > %24 $ 24 (b) Should Kajsa have been reprimanded? Kajsa should have been reprimanded. %24 > > > > > > > > > > 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, 2020 Difference Favourable Unfavourable Neither Favourable Budget Actual nor Unfavourable Sales in units 7,800 11,000 3,200 Favourable Variable costs Sales commissions $1,716 $2,640 $924 Unfavourable Advertising expense 780 1,100 320 Unfavourable Travel expense 3,744 4,950 1,206 Unfavourable Free samples given out 1,482 1,210 272 Favourable Total variable costs 7,722 9,900 2,178 Unfavourable Fixed costs Rent 1,700 1,700 -0- Neither Favourable nor Unfavourable Sales salaries 1,400 1,400 -0- Neither Favourable nor Unfavourable Office salaries -0- Neither Favourable nor Unfavourable 900 900 Depreciation-vehicles (sales staff) -0- Neither Favourable nor Unfavourable 600 600 Total fixed costs 4,600 -0- Neither Favourable nor Unfavourable 4,600 Total costs $12,322 $14,500 $2,178 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, 2020 Budget Actual %24 %24 > > > > > %24 $ 24 (b) Should Kajsa have been reprimanded? Kajsa should have been reprimanded. %24 > > > > > > > > > >

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