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As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Flounder Company for the month of October.

FLOUNDER COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022
					Difference
	Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
Sales in units	7,200		9,000		1,800	Favorable
Variable expenses
Sales commissions	$2,160		$2,340		$180	Unfavorable
Advertising expense	648		765		117	Unfavorable
Travel expense	3,240		3,690		450	Unfavorable
Free samples given out	1,440		1,260		180	Favorable
Total variable	7,488		8,055		567	Unfavorable
Fixed expenses
Rent	1,350		1,350		0	Neither Favorable nor Unfavorable
Sales salaries	1,080		1,080		0	Neither Favorable nor Unfavorable
Office salaries	720		720		0	Neither Favorable nor Unfavorable
Depreciationautos (sales staff)	450		450		0	Neither Favorable nor Unfavorable
Total fixed	3,600		3,600		0	Neither Favorable nor Unfavorable
Total expenses	$11,088		$11,655		$567	Unfavorable

As a result of this budget report, Joe was called into the presidents 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. (a) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses.)

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