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As sales manager, Sam Batista was given the follow...

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As sales manager, Sam Batista was given the following static budget report for selling expenses in the Clothing Department of Garza Company for the month of October. GARZA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2011 Difference Favorable F Budget Actual Unfavorable U Sales in units 8,000 10,000 2,000 F Variable expenses Sales commissions $ 2,000 $ 2,600 $600 U Advertising expense 800 850 50 U Travel expense 3,600 4,000 400 U Free samples given out 1,600 1,300 300 F Total variable 8,000 8,750 750 U Fixed expenses Rent 1,500 1,500 - 0 - Sales salaries 1,200 1,200 - 0 - Office salaries 800 800 - 0 - Depreciation-autos (sales staff) 500 500 - 0 - Total fixed 4,000 4,000 - 0 - Total expenses $12,000 $12,750 $ 750 U As a result of this budget report, Sam 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. Sam 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 Sam. (If answer is zero, please enter 0 for the amount and NA for the variance. Do not leave any fields blank.) GARZA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2011 Difference Favorable F Budget Actual Unfavorable U Sales in units Neither NA Variable expenses Sales commissions $ $ $ Advertising expense Travel expense Free samples Total variable exp. Fixed costs Rent Sales salaries Office salaries Depr.-sale staff autos Total fixed expenses Total expenses $ $ $

 

Paper#11723 | Written in 18-Jul-2015

Price : $25
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