Exercise 10-9 As sales manager, Joe Batista was given the following static budge
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Exercise 10-9 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 Budget Report For the Month Ended October 31, 2017 Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 8,400 9,000 600 Favorable Variable expenses Sales commissions Advertising expense Travel expense Free samples given out $1,680 $2,430 $750 Unfavorable 1,176 4,032 3,150 882 Favorable 1,680 8,568 7,380 1,188 Favorable 810 366 Favorable 990 690 Favorable Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) 1,800 1,800 -0 Neither Favorable nor Unfavorable 1,100 1,100 -0- Neither Favorable nor Unfavorable 600 -0-Neither Favorable nor Unfavorable 500 500 -0- Neither Favorable nor Unfavorable 4,000 4,000 0-Neither Favorable nor Unfavorable 600 Total fixed Total expenses $12,568 $11,380 $1,188 Favorable As 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. Prepare a budget report based on flexible budget data to help Joe. (List variable costs before fixed costs. Do not leave any answer field blank. Enter 0 for amounts.)Explanation / Answer
Sales 8400 9000
Variable expenses
Advertisement
Sales expenses
Travel
Free samples given
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