As sales manager, Joe Batista was given the following static budget report for selling expenses in the ClothingDepartment of Soria Company for the month of October.Sales in unitsVariable expensesSales commissionsAdvertising expenseTravel expenseFree samples given outTotal variableFixed expensesRent(a)Sales salariesOffice salariesDepreciation-autos (sales staff)Total fixedTotal expensesSORIA COMPANYClothing DepartmentBudget ReportFor the Month Ended October 31, 2022Budget8,000$2,4007203,6001,6008,3201,5001,2008005004,000$12,320Actual$2,60085010,000 2,000 Favorable4,1001,4008,9501,5001,2008005004,000Difference$12,950FavorableUnfavorableNeither Favorablenor Unfavorable$200 Unfavorable130 Unfavorable500 Unfavorable200 Favorable630 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$630 UnfavorableAs a result of this budget report, Joe was called into the president's office and congratulated on his fine salesperformance. He was reprimanded, however, for allowing his costs to get out of control. Joe knew something waswrong with the performance report that he had been given. However, he was not sure what to do, and comes to you foradvice.Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixedexpenses.) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixedexpenses.)(b)Should Joe have been reprimanded?+++$$BudgetSORIA COMPANYSelling Expense Flexible Budget ReporClothing Department$$ActualTIl ta

A flexible budget performance report is a budget for more than one level of activity that is used by…

Answered: As sales manager, Joe Batista was given…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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