As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Cheyenne Company for the month of October. Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable (a) Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fored Total expenses CHEYENNE COMPANY Clothing Department Budget Report For the Month Eaded October 31, 2022 Budget 7,040 $2.112 704 3.168 1408 7,392 1.320 1.056 704 440 3,520 $10,912 Actual 748 3,608 8.800 1,760 Favorable 1232 $2.288 $176 Unfavorable 44 Unfavorable 440 Unfavorable 176 Favorable 484 Unfavorable 7,876 1,320 1.056 704 440 Difference 3.520 Favorable Unfavorable $11.396 Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $484 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. Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses)
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Cheyenne Company for the month of October. Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable (a) Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fored Total expenses CHEYENNE COMPANY Clothing Department Budget Report For the Month Eaded October 31, 2022 Budget 7,040 $2.112 704 3.168 1408 7,392 1.320 1.056 704 440 3,520 $10,912 Actual 748 3,608 8.800 1,760 Favorable 1232 $2.288 $176 Unfavorable 44 Unfavorable 440 Unfavorable 176 Favorable 484 Unfavorable 7,876 1,320 1.056 704 440 Difference 3.520 Favorable Unfavorable $11.396 Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $484 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. Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of
Cheyenne Company for the month of October.
Sales in units
Variable expenses
Sales commissions
Advertising expense
Travel expense
Free samples given out
Total variable
Fixed expenses
Rent
Sales salaries
Office salaries
Depreciation-autos (sales staff)
Total foxed
Total expenses
CHEYENNE COMPANY
Clothing Department
Budget Report
For the Month Ended October 31, 2022
Budget
7,040
$2.112
704
3,168
1408
7,392
1.320
1.056
704
440
3,520
$10,912
Actual
8,800
1.232
7,876
$2.288 $176 Unfavorable
748
44 Unfavorable
3,608 440 Unfavorable
176 Favorable
484 Unfavorable
1,320
1,056
704
440
3,520
Difference
$11,396
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
1,760 Favorable
-0- Neither Favorable nor Unfavorable
-0- Neither Favorable nor Unfavorable
-0- Neither Favorable nor Unfavorable
-0- Neither Favorable nor Unfavorable
-0- Neither Favorable nor Unfavorable
$484 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.
(a)
Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses)
Transcribed Image Text:4 7:00
Prepare a budget report based on flexible budget data to help Joe (List variable expenses before fixed expenses.)
(b)
O
O
0
O
C
O
o
Show Transcribed Text
Budget
Save for Later
O
Show Transcribed Text
O
O
O
CHEYENNE COMPANY
Selling Expense Flexible Budget Report
Clothing Department
eTextbook and Media
Should Joe have been reprimanded?
O
$
Actual
Vol 1 1.10
LTE2 KB/S 99%
Difference
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
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