As sales manager, Joe Batista was given the following static budget… As sales manager, J

As sales manager, Joe Batista was given the following static budget… 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 COMPANYClothing DepartmentBudget ReportFor the Month Ended October 31, 2020           Difference  Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Sales in units7,600 10,000 2,400FavorableVariable expenses          Sales commissions$1,824 $2,600 $776Unfavorable    Advertising expense988 800 188Favorable    Travel expense3,496 4,000 504Unfavorable    Free samples given out1,520 1,200 320Favorable       Total variable7,828 8,600 772UnfavorableFixed expenses           Rent1,700 1,700 -0-Neither Favorable nor Unfavorable     Sales salaries1,300 1,300 -0-Neither Favorable nor Unfavorable     Office salaries600 600 -0-Neither Favorable nor Unfavorable     Depreciation—autos (sales staff)500 500 -0-Neither Favorable nor Unfavorable       Total fixed4,100 4,100 -0-Neither Favorable nor UnfavorableTotal expenses$11,928 $12,700 $772UnfavorableAs a result of this budget report, Joe 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. Joe knew 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.Create a flexible budget to help Joe Accounting Business Managerial Accounting GB 519 Share QuestionEmailCopy link