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Flexible Budget and variance analysis based on same.
As sales manager, Terry Dewitt was given the following static budget report for selling expenses in the Clothing Department of Garber Company for the month of October.
GARBER COMPANY
Clothing Department
Budget Report
For the Month Ended October 31, 2008
Difference
Favorable F
Budget
Actual
Unfavorable U
Sales in units
8,000
10,000
2,000
F
Variable expenses
Sales commissions
$ 2,000
$ 2,600
$ 600
U
Advertising expense
800
850
50
Travel expense
3,600
4,000
400
Free samples given out
1,600
1,300
300
Total variable
8,750
750
Fixed expenses
Rent
1,500
-0-
Sales salaries
1,200
Office salaries
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