Question

In: Accounting

As sales manager, Joe Batista was given the following static budget report for selling expenses in...

As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Martinez Company for the month of October. Martinez Company Clothing Department Budget Report For the Month Ended October 31, 2017 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Sales in units 7,900 9,000 1,100 Favorable Variable expenses Sales commissions $1,896 $2,430 $534 Unfavorable Advertising expense 1,106 630 476 Favorable Travel expense 3,318 3,150 168 Favorable Free samples given out 1,185 990 195 Favorable Total variable 7,505 7,200 305 Favorable Fixed expenses Rent 1,200 1,200 –0– Neither Favorable nor Unfavorable Sales salaries 1,000 1,000 –0– Neither Favorable nor Unfavorable Office salaries 700 700 –0– Neither Favorable nor Unfavorable Depreciation—autos (sales staff) 400 400 –0– Neither Favorable nor Unfavorable Total fixed 3,300 3,300 –0– Neither Favorable nor Unfavorable Total expenses $10,805 $10,500 $305 Favorable 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. Prepare a budget report based on flexible budget data to help Joe.

Solutions

Expert Solution



Related Solutions

As sales manager, Joe Batista was given the following static budget report for selling expenses in...
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, 2020 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Sales in units 7,800 10,000 2,200 Favorable Variable expenses Sales commissions $2,184 $2,400 $216 Unfavorable Advertising expense 1,092 1,000 92 Favorable Travel expense 3,432 4,500 1,068 Unfavorable Free samples given out...
As sales manager, Joe Batista was given the following static budget report for selling expenses in...
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, 2020 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Sales in units 7,900 10,000 2,100 Favorable Variable expenses     Sales commissions $1,896 $2,400 $504 Unfavorable     Advertising expense 1,027 800 227 Favorable     Travel expense 3,160 4,500 1,340 Unfavorable     Free samples given out...
As sales manager, Joe Batista was given the following static budget report for selling expenses in...
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Crane Company for the month of October. CRANE COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Sales in units 7,500 9,000 1,500 Favorable Variable expenses     Sales commissions $1,500 $2,160 $660 Unfavorable     Advertising expense 750 630 120 Favorable     Travel expense 3,000 3,150 150 Unfavorable     Free samples given out...
As sales manager, Joe Batista was given the following static budget report for selling expenses in...
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Vaughn Company for the month of October. VAUGHN COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Sales in units 7,500 10,000 2,500 Favorable Variable expenses     Sales commissions $1,950 $2,500 $550 Unfavorable     Advertising expense 1,050 900 150 Favorable     Travel expense 3,000 4,500 1,500 Unfavorable     Free samples given out...
As sales manager, Joe Batista was given the following static budget report for selling expenses in...
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, 2017 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Sales in units 7,800 11,000 3,200 Favorable Variable expenses Sales commissions $1,716 $2,640 $924 Unfavorable Advertising expense 780 1,100 320 Unfavorable Travel expense 3,744 4,950 1,206 Unfavorable Free samples given out...
As sales manager, Joe Batista was given the following static budget report for selling expenses in...
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, 2017 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Sales in units 7,500 10,000 2,500 Favorable Variable expenses Sales commissions $1,950 $2,500 $550 Unfavorable Advertising expense 1,050 900 150 Favorable Travel expense 3,000 4,500 1,500 Unfavorable Free samples given out...
As sales manager, Joe Batista was given the following static budget report for selling expenses in...
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, 2012 Difference Budget Actual Favorable F Unfavorable U Neither Favorable nor Unfavorable N Sales in units 7,500 9,800 3,500 F Variable expenses     Sales commissions $1,800 $3,080 $1,280 U     Advertising expense 1,050 990 60 F     Travel expense 3,300 4,950 1,650 U     Free...
Question 1 As sales manager, Joe Batista was given the following static budget report for selling...
Question 1 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, 2017 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Sales in units 7,500 11,000 3,500 Favorable Variable expenses     Sales commissions $1,950 $2,970 $1,020 Unfavorable     Advertising expense 975 1,210 235 Unfavorable     Travel expense 3,600 3,850 250 Unfavorable     Free samples...
Exercise 10-9 a As sales manager, Joe Batista was given the following static budget report for...
Exercise 10-9 a 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, 2020 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Sales in units 7,800 9,000 1,200 Favorable Variable expenses     Sales commissions $1,560 $2,160 $600 Unfavorable     Advertising expense 1,092 810 282 Favorable     Travel expense 3,276 3,600 324 Unfavorable     Free...
You are given the following static budget report: Budget            Actual              Variance Unit Sales  &nbsp
You are given the following static budget report: Budget            Actual              Variance Unit Sales                                           10,000               15,000             5,000 F Variable Expenses:     Commissions                                  $30,000 $33,000 $3,000 U     Advertising                                      $1,000 $1,200 $200 U     Travel                                              $10,000 $11,000 $1,000 U     Samples                                          $2,500 $2,300 $200 F Total Variable                                     $43,500 47,500 $4,000 U Fixed Expenses     Rent                                                 $5,000 $5,000 0     Salaries – Sales                               $2,000 $2,000 0     Salaries – Office                              $1,200 $1,200 0     Depreciation                                    $1,500 $1,500 0 Total Fixed                                          $9,700 $9,700             0 Total Expenses $53,200 $57,200 $4,000 U Prepare a flexible budget analysis and explain whether you believe that costs were controlled.  How do the results of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT