SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31,
ID: 2567421 • Letter: S
Question
SORIA COMPANY
Clothing Department
Budget Report
For the Month Ended October 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
7,700
11,000
3,300
$1,848
$2,640
$792
924
990
66
3,542
4,400
858
1,848
1,210
638
8,162
9,240
1,078
1,400
1,400
–0–
1,000
1,000
–0–
900
900
–0–
400
400
–0–
3,700
3,700
–0–
$11,862
$12,940
$1,078
SORIA COMPANY
Selling Expense Flexible Budget Report
Clothing Department
For the Month Ended October 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
SORIA COMPANY
Clothing Department
Budget Report
For the Month Ended October 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
7,700
11,000
3,300
Favorable Variable expenses Sales commissions$1,848
$2,640
$792
Unfavorable Advertising expense924
990
66
Unfavorable Travel expense3,542
4,400
858
Unfavorable Free samples given out1,848
1,210
638
Favorable Total variable8,162
9,240
1,078
Unfavorable Fixed expenses Rent1,400
1,400
–0–
Neither Favorable nor Unfavorable Sales salaries1,000
1,000
–0–
Neither Favorable nor Unfavorable Office salaries900
900
–0–
Neither Favorable nor Unfavorable Depreciation—autos (sales staff)400
400
–0–
Neither Favorable nor Unfavorable Total fixed3,700
3,700
–0–
Neither Favorable nor Unfavorable Total expenses$11,862
$12,940
$1,078
UnfavorableAs 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.)
SORIA COMPANY
Selling Expense Flexible Budget Report
Clothing Department
For the Month Ended October 31, 2017
Difference
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Total Fixed CostsAdvertising ExpenseFree SamplesSales CommissionsTotal CostsOffice SalariesDepreciation—Sale Staff AutosVariable CostsRentSales in UnitsSales SalariesFixed CostsTotal Variable CostsTravel Expense
Total Variable CostsTravel ExpenseVariable CostsAdvertising ExpenseTotal CostsSales CommissionsTotal Fixed CostsDepreciation—Sale Staff AutosFixed CostsFree SamplesSales in UnitsOffice SalariesRentSales Salaries
Office SalariesAdvertising ExpenseTravel ExpenseSales CommissionsTotal Fixed CostsFree SamplesVariable CostsSales SalariesDepreciation—Sale Staff AutosTotal Variable CostsRentTotal CostsSales in UnitsFixed Costs
$ $ $UnfavorableFavorableNeither Favorable nor Unfavorable
Office SalariesTotal CostsFixed CostsSales CommissionsFree SamplesAdvertising ExpenseSales in UnitsRentSales SalariesTotal Fixed CostsTotal Variable CostsTravel ExpenseVariable CostsDepreciation—Sale Staff Autos
Neither Favorable nor UnfavorableUnfavorableFavorable
Total CostsFixed CostsFree SamplesRentTotal Variable CostsVariable CostsTotal Fixed CostsDepreciation—Sale Staff AutosSales SalariesAdvertising ExpenseSales CommissionsOffice SalariesSales in UnitsTravel Expense
UnfavorableNeither Favorable nor UnfavorableFavorable
Sales SalariesTravel ExpenseTotal CostsOffice SalariesTotal Fixed CostsAdvertising ExpenseSales in UnitsVariable CostsTotal Variable CostsFixed CostsDepreciation—Sale Staff AutosFree SamplesRentSales Commissions
Neither Favorable nor UnfavorableFavorableUnfavorable
Total Fixed CostsRentOffice SalariesTotal CostsAdvertising ExpenseSales in UnitsTotal Variable CostsTravel ExpenseFree SamplesFixed CostsDepreciation—Sale Staff AutosSales CommissionsSales SalariesVariable Costs
Neither Favorable nor UnfavorableUnfavorableFavorable
Total CostsTotal Variable CostsFree SamplesSales in UnitsTravel ExpenseSales SalariesOffice SalariesRentTotal Fixed CostsVariable CostsAdvertising ExpenseSales CommissionsDepreciation—Sale Staff AutosFixed Costs
Advertising ExpenseSales in UnitsOffice SalariesVariable CostsTotal Fixed CostsSales CommissionsTotal Variable CostsSales SalariesFree SamplesDepreciation—Sale Staff AutosTravel ExpenseRentFixed CostsTotal Costs
FavorableNeither Favorable nor UnfavorableUnfavorable
Sales CommissionsAdvertising ExpenseTravel ExpenseDepreciation—Sale Staff AutosTotal Fixed CostsSales in UnitsTotal CostsSales SalariesOffice SalariesTotal Variable CostsRentVariable CostsFixed CostsFree Samples
Neither Favorable nor UnfavorableUnfavorableFavorable
Sales in UnitsOffice SalariesFree SamplesSales SalariesRentSales CommissionsTotal Variable CostsTravel ExpenseVariable CostsTotal CostsAdvertising ExpenseTotal Fixed CostsDepreciation—Sale Staff AutosFixed Costs
UnfavorableNeither Favorable nor UnfavorableFavorable
Depreciation—Sale Staff AutosFixed CostsOffice SalariesTotal Variable CostsSales CommissionsFree SamplesTotal CostsAdvertising ExpenseSales in UnitsRentSales SalariesTotal Fixed CostsTravel ExpenseVariable Costs
FavorableNeither Favorable nor UnfavorableUnfavorable
Travel ExpenseDepreciation—Sale Staff AutosTotal Fixed CostsVariable CostsOffice SalariesAdvertising ExpenseSales SalariesFixed CostsRentSales CommissionsSales in UnitsFree SamplesTotal CostsTotal Variable Costs
UnfavorableFavorableNeither Favorable nor Unfavorable
Sales in UnitsFixed CostsDepreciation—Sale Staff AutosFree SamplesOffice SalariesRentTotal Fixed CostsTotal Variable CostsTravel ExpenseSales CommissionsVariable CostsAdvertising ExpenseSales SalariesTotal Costs
$ $ $ UnfavorableFavorableNeither Favorable nor Unfavorable
*THE LISTS TO THE RIGHT AND LEFT ARE OPTIONS TO CHOOSE FROM FOR EACH SECTION
Explanation / Answer
Budget Actual Difference Sale in units 11,000 11,000 variable expenses sales commissions 2640 2,640 0 N advertising expense 1320 990 330 F travel expense 5060 4,400 660 F free samples given 2640 1,210 1430 F total variable expense 11660 9,240 2420 F Fixed expense Rent 1,400 1,400 0 N Sales salaries 1,000 1,000 0 N office salaries 900 900 0 N Depreciation-auto 400 400 0 N total fixed 3,700 3,700 0 N total expenses 15,360 12,940 2420 F
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