As sales manager, Michelle Walker was given the following static budget report for selling expenses in the clothing department of Sandhill Company for the month of October. SANDHILL COMPANY Clothing Department Budget Report Month Ended October 31.2022 Difference Favourable Unfavourable Neither Favourable Budget Actual nor Unfavourable Sales in units 7,800 10,000 2.200 Favourable Variable costs Sales commissions $1872 $2,400 $528 Unfavourable Advertising expense 936 900 36 Favourable Travel expense 4,000 880 Unfavourable 3.120 Travel expense Free samples given out Total variable costs 3,120 4,000 880 Unfavourable 1,794 1,300 494 Favourable 7,722 8,600 878 Unfavourable Fixed costs Rent 1.700 1,700 -0- Neither Favourable nor Unfavourable Sales salaries 1.100 1.100 -0- Neither Favourable nor Unfavourable Neither Favourable nor Unfavourable Office salaries 800 800 -0- Depreciation-vehicles (sales staff) 400 400 -0 Neither Favourable nor Unfavourable Total fixed costs 4,000 4,000 -0- Neither Favourable nor Unfavourable Total costs $11.722 $12,600 $878 Unfavourable As a result of this budget report, Michelle 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 Michelle. (List variable costs before fixed costs) SANDHILL COMPANY Selling Expense Flexible Budget Report Clothing Department Actual Budget N 11