Tabs are Free Samples Rent Total Fixed expences Total Variable Expences Advertis
ID: 2475825 • Letter: T
Question
Tabs are
Free Samples
Rent
Total Fixed expences
Total Variable Expences
Advertising Expences
Sales Commissions
Sales Salaries
Total Expences
Office Salaries
Depreciation
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 SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2014 Difference Favorable (F) Unfavorable (U) Neither favorable nor unfavorable Budget Actual Sales in units 8,100 9,900 1,800 F Variable expenses Sales commissions Advertising expense Travel expense Free samples given out $1,782 $2,772 891 3,321 3,663 1,8631,188 7.776 8,514 $990 U 81 U 342 U 675 F 738 U 810 Total variable Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales 1,600 1,600 1,300 1,300 800 500 800 500 staff) Total fixed 4,200 4,200 $11,976 $12,714 Total expenses $738 U 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 adviceExplanation / Answer
Soria Company Selling Expenses Flexible Budget Report Clothing Department For the Month ended October 31, 2014 Budget Actual Difference Sales in Units 8100 9900 1800F Variable Expenses Sales Commission 1782 2772 990 U Advertising 810 891 81 U Travel 3321 3663 342U Free Samples Given 1863 1188 675 F Total Variable 7776 8514 738U Fixed Expenses Rent 1600 1600 N Salaries 1300 1300 N Office Salaries 800 800 N Depreciation 500 500 N Total Fixed Expenses 4200 4200 N Total Expenses 11976 12714 738 U
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