Question

As sales manager, Joe Batista was given the following static budget report for seling 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, 2017 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 7,800 10,000 2,200 Favorable Variable expenses Sales commissions $1,872 $2,400 $528 Unfavorable Advertising expense 936 900 36 Favorable Travel expense 3,120 4,000 880 Unfavorable Free samples given out 1,794 1,300 494 Favorable Total variable 7,722 8,600 878 Unfavorable Fixed expenses Rent 1,700 1,700 -- Neither Favorable nor Unfavorable Sales salaries 1,100 1,100 -0-Neither Favorable nor Unfavorable Office salaries 800 800 -0-Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 400 400 -- Neither Favorable nor Unfavorable Total fixed 4,000 4,000 -- Neither Favorable nor Unfavorable Total expenses $11,722 $12,600 $878 Unfavorable

Answer 1

							difference
					Budget	actual
Sales in units				per unit	10,000	10,000
Variable expenses
sales commission		1872/7800		0.24	2400	2,400	0	N
advertising expense		936/7800		0.12	1200	900	300	F
travel expense		3120/7800		0.4	4000	4,000	0	N
free samples given		1794/7800		0.23	2300	1,300	1,000	F
total variable				0.99	9900	8,600	1,300	F
Fixed expenses
Rent					1,700	1,700	0	N
sales salaries					1,100	1,100	0	N
office salaries					800	800	0	N
Depreciation					400	400	0	N
total fixed					4,000	4,000	0	N
total expenses					13,900	12,600	1,300	F