Question 2

Question 2 of 5 5 E 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 Budget Actual nor Unfavorable Sales in units 7,800 11,000 3.200 Favorable Variable expenses Sales commissions $1,716 $2,640 $924 Unfavorable Advertising expense 780 1,100 320 Unfavorable Travel expense 3,744 4,950 1,206 Unfavorable Free samples given out 1.482 1,210 272 Favorable Total variable 7,722 9,900 2.178 Unfavorable Fixed expenses Rent 1,700 1,700 -0. Neither Favorable nor Unfavorabo Sales salaries 1400 1,400 -0- Neither Favorable nor Unfavorable Offices ares 900 900 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales stat) 600 600 - Nother Favorablenor Unfavorable Totale 4,600 4,600 -0- Nether Favorable nor Unfavorable Total expenses $12,322 $14.500 52,178 Unfavorable Question 2 of 5 5 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 Budget Actual v $ > Question 2 of 5 . 5 Budget Actual > $ $ $ $ >