Question

Current Attempt in Progress As sales manager, Hank Short was given the following static budget report for selling expenses in the Winter Sports Department of Jens Outdoor Company for the month of November Jennings Outdoor Company Winter Sports Department Budget Report For the Month Ended November 30 2020 Budget 3,900 Actual 4,500 Difference Favorable Unfavorable U 600 F $120,900 $131,800 35,100 39,100 179,400 201,300 105,300 99,500 440,700 471,700 Sales in units Variable expenses Sales commissions Advertising expense Travel expense Demonstration models given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation - vans (sales staff) Total fixed Total expenses 4.000 U 21,900 U 5,800 F 31,000 U 7.600 7.600 59 800 59.800 40,400 40.400 2.300 2700- 110,100 110,500 $550.800 $582.200 400 U $31400 U *The Increase in depreciation was due to a new vehicle that had to be purchased as a result of an accident driving on Snowroads on the way to visit a customer As a result of this budget report, Hank 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. Hankknew 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 (a) Prepare a budget report based on flexible budget data to help Hank (Round per unit answers to 2 decimal places 15.25 Jennings Outdoor Company

Answer 1

Flexible Budget (w.r.t 4500 units)
	Actual	Budget	Remarks
Units sold	4500	4500
Variable Expenses
Sale commission	$      131,800	$      139,500	F
Advertising expense	$        39,100	$        40,500	F
Travel expense	$      201,300	$      207,000	F
Demo models given out	$        99,500	$      121,500	F
	$      471,700	$      508,500
Fixed Expense
Rent	$          7,600	$          7,600
Sales salaries	$        59,800	$        59,800
Office salaries	$        40,400	$        40,400
Depreciation	$          2,700	$          2,300	U
	$      110,500	$      110,100
Total Expenses	$      582,200	$      618,600	F