Question

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 nor Unfavorable Budget Actual Sales in units 7,900 11,000 3,100 Favorable Variable expenses Sales commissions $2,054 $2.860 $806 Unfavorable Advertising expense Travel expense 869 3,476 1,659 770 4.950 1,210 99 Favorable 1,474 Unfavorable 449 Favorable Free samples given out Total variable 8,058 9.790 1.732 Unfavorable Fixed expenses Rent Sales salaries Office salaries 1,900 1,900 -0- Neither Favorable nor Unfavorable 1,100 1.100 O-Neither Favorable nor Unfavorable 800 800 0- Neither Favorable nor Unfavorable 600 600 -0-Neither Favorable nor Unfavorable 4,400 4.400 -O-Neither Favorable nor Unfavorable $12.458 $14.190 $1,732 Unfavorable Depreciation-autos (sales staff) Total fixed Total expenses As a result of this budget report, Joe was called into the president's office and congratulated on his fine

Answer 1

Selling Expense Flexible Budget Report
For the Month Ended October 31, 2020
	Budget	Actual	Difference
Sales in units	11000	11000
Variable costs:
Sales commissions	2860	2860	0	Neither Favorable nor Unfavorable
Advertising expense	1210	770	440	Favorable
Travel expense	4840	4950	110	Unfavorable
Free samples	2310	1210	1100	Favorable
Total variable costs	11220	9790	1430	Favorable
Fixed costs:
Rent	1900	1900	0	Neither Favorable nor Unfavorable
Sales salaries	1100	1100	0	Neither Favorable nor Unfavorable
Office salaries	800	800	0	Neither Favorable nor Unfavorable
Depreciation—autos	600	600	0	Neither Favorable nor Unfavorable
Total fixed costs	4400	4400	0	Neither Favorable nor Unfavorable
Total costs	15620	14190	1430	Favorable