Flexible budget and variance analysis based on sameas sales

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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

U

Travel expense

3,600

4,000

400

U

Free samples given out

1,600

1,300

300

F

Total variable

8,000

8,750

750

U

Fixed expenses

 

 

 

 

Rent

1,500

1,500

-0-

 

Sales salaries

1,200

1,200

-0-

 

Office salaries

800

800

-0-

 

 

Reference no: EM13355889

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