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As sales manager, Davis Short was given the following static budget report for selling expenses in the Winter Sports Department of DE Outdoor Company for the month of November DE Outdoor Company Winter Sports Department Budget Report For the Month Ended November 30, 2020 Budget Actual Difference Favorable F Unfavorable U 500 F 4000 4.500 $112.000 Sales in units Variable expenses Sales commissions Advertising expense Travel expense Demonstration models given out Total variable Fixed expenses $6,600 U 3.500 u $118,600 43,500 201,600 40,000 184.000 96,000 86.300 17.600 U 9,700 F 18,000 U 432.000 450,000 Rent 8.100 8 100 0 Sales salaries 59.400 59.400 0 Office salaries 40.200 40.200 -0 2.600 3,000 - 400 U Depreciation - vans (sales staff - Total foed Total expenses 110.300 110.700 400 U $542.300 $560.700 $18.400 U "The increase in depreciation was due to a new vehicle that had to be purchased as a result of an accident driving on snowy roads on the way to visit a customer As a result of this budget report, Davis 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 Davis 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 a Your answer is correct Prepare a budget report based on flodble budget data to help Davis. Round per unit answers to decimal places 1525) a DE Outdoor Company Winter Sports Department Flexible Budget Report For the Month Ended November 30 2000 Per Unit Budget Actual Sales in Unit 4500 Variable per Sales Commission 28 $ 120.000 Artising Epe 30 Travel 46 207.000 Free Dorion Models 24 4000 Total Variable 108 16.000 Paper ant DO Sales Solares S8.00 40200 Deprecation - Auto Sales San 2600 Total 13000 Toulon 5960300 e Textbook and Media (a) Your answer is correct Prepare a budget report based on flodble budget data to help Davis Round per unit anders to decimal places, eg 1525) DE Outdoor Company Winter Sports Department Flexible Budget Report or the Month Ended November 30, 2020 Difference Favorable Unfavorable Neither Evorable nor Unfavorable idget Actual 4500 4500 126.000 118.500 7400 Favor 45.000 43500 1500 Fan 207.000 201.800 5.400 Favor 108.000 36200 21100 Fax 456.000 450.000 36.000 3.100 Fabio Unavale 59400 59.400 Mehrwert 0200 40200 2600 3.000 00 Un 210300 110700 400 3.300 560.700 $ 25.000 Tactbook and Media (b) Your answer is correct Should Davis have been reprimanded? Explain Davis should not be reprimanded as Davis the expenses in his department e Textbook and Media Attempts: 1 of 3 used id After Davis because familiar with the fledible budget report, he began to analyze the numbers Daviesfeels that sales can be Increased ifDE Outdoor Company would increase sales commissions to $29.00 per unit. This would allow them to reduce advertising expense to $8.50 per unit Davis thinks that these changes will motivate the sales stato sellest 5.200 units. Hels allowed to try his plan in December and had the following results DE Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2020 Sales In units 5.400 Variable expenses Sales commissions $150.000 Advertising opens 43.900 Travel expense 241.000 Demonstration models given out 108.400 Total variable 543300 Fixed expenses Rent 8.100 Sales salaries 59.400 Office salaries 40 200 Depreciation - vans sales staft) 3.000 Total foxed 110.700 Total expenses $654000 Prepare a budget report based on flodble budget data. The new depreciation amount has been included in the budgeted found costs. (Round per unit answers to 2 decimal places, 15:25) Prepare a budget report based on flexible budget data. The new depreciation amount has been included in the budgeted foed costs. (Round per unit answers to 2 decimal places es 15.25) DE Outdoor Company Winter Sports Department Fledble Budget Report Per Unit Budget Actual > > > > > > > > > > Do you think the new plan is valid? Explain It appears that the new plan is a V as favorable total variance is bys Prepare a budget report based on flexible budget data The new depreciation amount has been included in the budgeted fred costs (Nound per unitat 2 decimal places 15.25) DE Outdoor Company Winter Sports Department Fledible Budget Report Per Unit Budget Actual Advertising Experte 5 Depreciation - Auto Sales Stan Fed Expenses Free Denonstration Models Orice Sales Rent Sales Commission Sales in Unit Sale Sales Total Expo Total Total Variable as favorable total variance is by Vaba Prepare a budget report based on tedble budget data The new depreciation amount has been included in the budgeted fod costs. Round per unites to 2 decimal places. 15.25) DE Outdoor Company Winter Sports Department Flexible Budget Report Per Unit Budget Actual > > food choice Do you think the new plan is valid rotagood choice It appears that the new plan is a as favorable total variance is ak by s eTextbook and Media Prepare a budget report based on flexible budget data The new depreciation amount has been indluded in the budgeted fored costs (Round per unit answers to 2 decimal places. 15.25 DE Outdoor Company Winter Sports Department Flexible Budget Report Per Unit Budget Actual > > > > > > >

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