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As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Cheyenne Company for the month of October. Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable (a) Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fored Total expenses CHEYENNE COMPANY Clothing Department Budget Report For the Month Eaded October 31, 2022 Budget 7,040 $2.112 704 3.168 1408 7,392 1.320 1.056 704 440 3,520 $10,912 Actual 748 3,608 8.800 1,760 Favorable 1232 $2.288 $176 Unfavorable 44 Unfavorable 440 Unfavorable 176 Favorable 484 Unfavorable 7,876 1,320 1.056 704 440 Difference 3.520 Favorable Unfavorable $11.396 Neither Favorable nor 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 $484 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. Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses)

As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Cheyenne Company for the month of October. Sales in units Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable (a) Fixed expenses Rent Sales salaries Office salaries Depreciation-autos (sales staff) Total fored Total expenses CHEYENNE COMPANY Clothing Department Budget Report For the Month Eaded October 31, 2022 Budget 7,040 $2.112 704 3.168 1408 7,392 1.320 1.056 704 440 3,520 $10,912 Actual 748 3,608 8.800 1,760 Favorable 1232 $2.288 $176 Unfavorable 44 Unfavorable 440 Unfavorable 176 Favorable 484 Unfavorable 7,876 1,320 1.056 704 440 Difference 3.520 Favorable Unfavorable $11.396 Neither Favorable nor 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 $484 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. Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses)

Managerial Accounting
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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As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Cheyenne 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 foxed Total expenses CHEYENNE COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Budget 7,040 $2.112 704 3,168 1408 7,392 1.320 1.056 704 440 3,520 $10,912 Actual 8,800 1.232 7,876 $2.288 $176 Unfavorable 748 44 Unfavorable 3,608 440 Unfavorable 176 Favorable 484 Unfavorable 1,320 1,056 704 440 3,520 Difference $11,396 Favorable Unfavorable Neither Favorable nor Unfavorable 1,760 Favorable -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 $484 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. (a) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses)
Transcribed Image Text:As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Cheyenne 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 foxed Total expenses CHEYENNE COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Budget 7,040 $2.112 704 3,168 1408 7,392 1.320 1.056 704 440 3,520 $10,912 Actual 8,800 1.232 7,876 $2.288 $176 Unfavorable 748 44 Unfavorable 3,608 440 Unfavorable 176 Favorable 484 Unfavorable 1,320 1,056 704 440 3,520 Difference $11,396 Favorable Unfavorable Neither Favorable nor Unfavorable 1,760 Favorable -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 $484 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. (a) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses)
4 7:00 Prepare a budget report based on flexible budget data to help Joe (List variable expenses before fixed expenses.) (b) O O 0 O C O o Show Transcribed Text Budget Save for Later O Show Transcribed Text O O O CHEYENNE COMPANY Selling Expense Flexible Budget Report Clothing Department eTextbook and Media Should Joe have been reprimanded? O $ Actual Vol 1 1.10 LTE2 KB/S 99% Difference Favorable Unfavorable Neither Favorable nor Unfavorable
Transcribed Image Text:4 7:00 Prepare a budget report based on flexible budget data to help Joe (List variable expenses before fixed expenses.) (b) O O 0 O C O o Show Transcribed Text Budget Save for Later O Show Transcribed Text O O O CHEYENNE COMPANY Selling Expense Flexible Budget Report Clothing Department eTextbook and Media Should Joe have been reprimanded? O $ Actual Vol 1 1.10 LTE2 KB/S 99% Difference Favorable Unfavorable Neither Favorable nor Unfavorable
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