Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total...

Transcribed Image Text:

Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed Total expenses For the Month Ended October 31, 2022 Budget 8,000 Actual 10,000 Difference Favorable F Unfavorable U 2,000 F $ 200 U 130 U $ 2,400 720 $ 2,600 850 3,600 4,100 500 U 1,600 1,400 200 F 8,320 8,950 630 U 1,500 1,500 1,200 1,200 800 800 500 500 4,000 $12,320 4,000 $12,950 -0- -0- $ 630 U 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. Instructions a. Prepare a budget report based on flexible budget data to help Joe. b. Should Joe have been reprimanded? Explain. Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed Total expenses For the Month Ended October 31, 2022 Budget 8,000 Actual 10,000 Difference Favorable F Unfavorable U 2,000 F $ 200 U 130 U $ 2,400 720 $ 2,600 850 3,600 4,100 500 U 1,600 1,400 200 F 8,320 8,950 630 U 1,500 1,500 1,200 1,200 800 800 500 500 4,000 $12,320 4,000 $12,950 -0- -0- $ 630 U 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. Instructions a. Prepare a budget report based on flexible budget data to help Joe. b. Should Joe have been reprimanded? Explain.