Question

Question 1 **/3.5 View Policies Current Attempt In Progress 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 8,200 11,000 2,800 Favorable Variable expenses Sales commissions $2,750 $946 Unfavorable $1,804 820 Advertising expense 990 170 Unfavorable Travel expense 3,772 4.950 1.178 Unfavorable Free samples given out 1,968 1,320 648 Favorable Total variable 8,364 10,010 1.646 Unfavorable

Answer 1

	Workings	Budget	Actual	Differences
Sales in units	(q)	11,000	11,000	0	Neither favorable nor unfavorable
Variable costs:
Sales Commission	($1804/ 8200) X 11000	2,420	$    2,750	$        330	Unfavorable
Advertising expense	($820/ 8200) X 11000	1,100	$        990	$        110	Favorable
Travel expense	($3772/ 8200) X 11000	5,060	$    4,950	$        110	Favorable
Free samples given out	($1968/ 8200) X 11000	2,640	$    1,320	$    1,320	Favorable
Total Variable cost		$ 11,220	$ 10,010	$    1,210	Favorable
Fixed expenses:
Rent		$    1,300	$    1,300	0	Neither favorable nor unfavorable
Sales salaries		$    1,300	$    1,300	0	Neither favorable nor unfavorable
Office salaries		$        800	$        800	0	Neither favorable nor unfavorable
Depreciation - autos (sales staff)		$        400	$        400	0	Neither favorable nor unfavorable
Total Fixed expenses		$    3,800	$    3,800	0	Neither favorable nor unfavorable
Total expense		$ 15,020	$ 13,810	$    1,210	Favorable