As sales manager joe batista was given the following static

Reference no: EM13581532

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 Clothing Department Budget Report For the Month Ended October 31, 2012
			Difference
	Budget	Actual	Favorable F Unfavorable U Neither Favorable nor Unfavorable N
Sales in units	7,800	9,800	2,000	F
Variable expenses
sales commissions	$1,638	$2,352	$714	U
Advertising expense	1,092	1,274	182	U
Travel expense	3,744	4,312	568	U
Free samples given out	1,170	882	288	F
Total variable	7,644	8,820	1,176	U
Fixed expenses
Rent	1,200	1,200	%u20130%u2013	N
Sales salaries	1,200	1,200	%u20130%u2013	N
Office salaries	800	800	%u20130%u2013	N
Depreciation%u2014autos (sales staff)	500	500	%u20130%u2013	N
Total fixed	3,700	3,700	%u20130%u2013	N
Total expenses	$11,344	$12,520	$1,176	U

As a result of this budget report, Joe was called into the president%u2019s 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.

Reference no: EM13581532

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