As sales manager, Joe Batista was given the following static budget report for selling expenses in the ClothingDepartment of Soria Company for the month of October.Sales in unitsVariable expensesSales commissionsAdvertising expenseTravel expenseFree samples given outTotal variableFixed expensesRent(a)Sales salariesOffice salariesDepreciation-autos (sales staff)Total fixedTotal expensesSORIA COMPANYClothing DepartmentBudget ReportFor the Month Ended October 31, 2022Budget8,000$2,4007203,6001,6008,3201,5001,2008005004,000$12,320Actual$2,60085010,000 2,000 Favorable4,1001,4008,9501,5001,2008005004,000Difference$12,950FavorableUnfavorableNeither Favorablenor Unfavorable$200 Unfavorable130 Unfavorable500 Unfavorable200 Favorable630 Unfavorable-0- Neither Favorable nor Unfavorable-0- Neither Favorable nor Unfavorable-0- Neither Favorable nor Unfavorable-0- Neither Favorable nor Unfavorable-0- Neither Favorable nor Unfavorable$630 UnfavorableAs a result of this budget report, Joe was called into the president's office and congratulated on his fine salesperformance. He was reprimanded, however, for allowing his costs to get out of control. Joe knew something waswrong with the performance report that he had been given. However, he was not sure what to do, and comes to you foradvice.Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixedexpenses.) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixedexpenses.)(b)Should Joe have been reprimanded?+++$$BudgetSORIA COMPANYSelling Expense Flexible Budget ReporClothing Department$$ActualTIl ta

A flexible budget performance report is a budget for more than one level of activity that is used by…

Answered: As sales manager, Joe Batista was given…

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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 1PB

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GHT Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows: During January, the costs incurred in the Consumer Products Division were as follows: Instructions 1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. 2. For which costs might the director be expected to request supplemental reports?
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October. Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Total expenses Budget 7,500 $1,950 975 3,600 1,200 7,725 1,500 1,300 900 600 4,300 $12,025 Actual 11,000 1,210 3,850 1,540 $2,970 $1,020 Unfavorable 9,570 1,500 1,300 900 600 4,300 Difference Favorable Unfavorable Neither Favorable nor Unfavorable 3,500 Favorable 235 Unfavorable 250 Unfavorable 340 Unfavorable -0- 1,845 Unfavorable -0- Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $13,870…
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Accounting Question
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