Budget$4ActualDifferenFavorabUnfavoraNeither Favinor Unfavo As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of SarasotaCompany for the month of October.Sales in unitsVariable expensesSales commissionsAdvertising expenseTravel expenseFree samples given outTotal variable:Fixed expensesSARASOTA COMPANYClothing DepartmentBudget ReportFor the Month Ended October 31, 2022RentSales salariesOffice salariesDepreciation-autos (sales staff)Total fixedTotal expensesBudget8,640$2,5928643,8881,7289,0721,6201,2968645404,320$13,392$2,808Actual10,800 2.160 FavorableA9184,4281.5129.6661,6201,296864540DifferenceFavorableUnfavorable4,320$13.986Neither Favorablenor Unfavorable$216 Unfavorable54 Unfavorable540 Unfavorable216 Favorable.594 Unfavorable-0- Neither Favorable nor Unfavorable-0- Neither Favorable nor Unfavorable-0- Neither Favorable nor Unfavorable-0- Neither Favorable nor Unfavorable-O- Neither Favorable nor Unfavorable$594 UnfavorableAs a result of this budget report, Joe was called into the president's office and congratulated on his fine sales performance. He wasreprimanded, however, for allowing his costs to get out of control. Joe knew something was wrong with the performance report thathe had been given. However, he was not sure what to do, and comes to you for advice.

Variable cost Depends upon the production of goods or services that is increment of sales increases…

As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Sarasota Company for the month of October. Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable SARASOTA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fixed Total expenses Budget 8,640 $2,592 $2.808 864 918 3,888 1,728 9,072 1.620 1,296 864 540 4,320 $13,392 Actual 10,800 2.160 Favorable A 4,428 1.512 9.666 1,620 1,296 864 540 4,320 Difference Favorable Unfavorable Neither Favorable nor Unfavorable $13.986 $216 Unfavorable 54 Unfavorable 540 Unfavorable 216 Favorable 594 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 $594 Unfavorable As a result of this budget report, Joe 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. 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.

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