60.1K

Verified Solution

Link Copied!

As sales manager, David Davis was given the following static budget report for selling expenses in the Clothing Department of Pharoah Company for the month of October Pharoah Company Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual 7.500 11,000 3,500 Favorable $1,800 $3,080 1.050 990 Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable Fixed expenses 3,300 4,950 $1,280 Unfavorable 60 Favorable 1.650 Unfavorable 265 Unfavorable 3,135 Unfavorable 1.275 1.540 7.425 10.560 Rent 1.600 1600 1.100 1.100 900 900 Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable $3,135 Unfavorable 600 600 4200 4.200 Total expenses $11,625 $14,760 As a result of this budget report. David 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. David 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 fledble budget data to help David (list variable costs before fired costs) PHAROAH COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2022 Ne Budget Actual n V $ $ $ $ Budge $ Variable Expenses Sales in Units Advertising Expense Rent Total Fixed Expenses Office Salaries Total Expenses Travel Expense Total Variable Expenses Fixed Expenses Sales Salaries Free Samples Sales Commissions Depreciation-Sale Staff Autos

Answer & Explanation Solved by verified expert

See Answer