Homework Help is Here – Start Your Trial Now!
Business
Accounting
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Monty Company for the month of October. MONTY COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 7,840 9,800 1,960 Favorable Variable expenses Sales commissions $2,352 $2,548 $196 Unfavorable Advertising expense 784 833 49 Unfavorable Travel expense 3,528 4,018 490 Unfavorable Free samples given out 1,568 1,372 196 Favorable Total variable 8,232 8,771 539 Unfavorable Fixed expenses Rent 1,470 1,470 Sales salaries 1,176 1,176 Office salaries 784 784 Depreciation-autos (sales staff) 490 490 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Total fixed 3,920 3,920 -0- Neither Favorable nor Unfavorable Total expenses $12,152 $12,691 $539 Unfavorable 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. $ MONTY COMPANY Selling Expense Flexible Budget Report Clothing Department Budget Actual $ $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable

As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Monty Company for the month of October. MONTY COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 7,840 9,800 1,960 Favorable Variable expenses Sales commissions $2,352 $2,548 $196 Unfavorable Advertising expense 784 833 49 Unfavorable Travel expense 3,528 4,018 490 Unfavorable Free samples given out 1,568 1,372 196 Favorable Total variable 8,232 8,771 539 Unfavorable Fixed expenses Rent 1,470 1,470 Sales salaries 1,176 1,176 Office salaries 784 784 Depreciation-autos (sales staff) 490 490 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Total fixed 3,920 3,920 -0- Neither Favorable nor Unfavorable Total expenses $12,152 $12,691 $539 Unfavorable 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. $ MONTY COMPANY Selling Expense Flexible Budget Report Clothing Department Budget Actual $ $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 1PB
See similar textbooks
icon
Related questions
Question
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Monty Company for the month of October. MONTY COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 7,840 9,800 1,960 Favorable Variable expenses Sales commissions $2,352 $2,548 $196 Unfavorable Advertising expense 784 833 49 Unfavorable Travel expense 3,528 4,018 490 Unfavorable Free samples given out 1,568 1,372 196 Favorable Total variable 8,232 8,771 539 Unfavorable Fixed expenses Rent 1,470 1,470 Sales salaries 1,176 1,176 Office salaries 784 784 Depreciation-autos (sales staff) 490 490 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Total fixed 3,920 3,920 -0- Neither Favorable nor Unfavorable Total expenses $12,152 $12,691 $539 Unfavorable 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.
Transcribed Image Text:As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Monty Company for the month of October. MONTY COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 7,840 9,800 1,960 Favorable Variable expenses Sales commissions $2,352 $2,548 $196 Unfavorable Advertising expense 784 833 49 Unfavorable Travel expense 3,528 4,018 490 Unfavorable Free samples given out 1,568 1,372 196 Favorable Total variable 8,232 8,771 539 Unfavorable Fixed expenses Rent 1,470 1,470 Sales salaries 1,176 1,176 Office salaries 784 784 Depreciation-autos (sales staff) 490 490 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Total fixed 3,920 3,920 -0- Neither Favorable nor Unfavorable Total expenses $12,152 $12,691 $539 Unfavorable 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.
$ MONTY COMPANY Selling Expense Flexible Budget Report Clothing Department Budget Actual $ $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable
Transcribed Image Text:$ MONTY COMPANY Selling Expense Flexible Budget Report Clothing Department Budget Actual $ $ $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS