Flexible Budget and variance analysis based on same.
As sales manager, Terry Dewitt was given the following static budget report for selling expenses in the Clothing Department of Garber Company for the month of October.
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GARBER COMPANY
Clothing Department
Budget Report
For the Month Ended October 31, 2008
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Difference
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Favorable F
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Budget
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Actual
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Unfavorable U
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Sales in units
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8,000
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10,000
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2,000
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F
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Variable expenses
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Sales commissions
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$ 2,000
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$ 2,600
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$ 600
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U
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Advertising expense
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800
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850
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50
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U
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Travel expense
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3,600
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4,000
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400
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U
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Free samples given out
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1,600
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1,300
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300
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F
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Total variable
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8,000
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8,750
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750
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U
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Fixed expenses
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Rent
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1,500
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1,500
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-0-
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Sales salaries
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1,200
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1,200
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-0-
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Office salaries
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800
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800
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-0-
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