D.1.Flexible Budget Report (2 Requirements below)2.As sales manager, John was given the following static budget report in the clothing department of3.Dunham Company for the month of October:4.DUNHAM COMPANYClothing DepartmentStatic Budget ReportMonth Ended October 31, 20205.7.U, F or N/A3,100 FavourableActualBudgetVariance7,900Sales in Units10 Variable Costs11 Sales commissions12 Advertising expense13 Travel expense14 Free samples given out15 Total variable costs16 Fixed costs9.11,0001,074 Unfavourable336 Favourable$2,970$1,8967701,1063,3183,8501,2108,800532 Unfavourable25 Unfavourable1,295 Unfavourable1 1857,50517 Rent1,2001,000700400N/AN/AN/A1,20018 Sales salaries19 Office salaries1,00070020 Depreciation - vehicles400N/A21Total fixed costsN/A1,295 Unfavourable3,3003 30022 Total costs$12,100$10,80523 As a result of this report, John was called into the president's office and congratulated on his fine sales24 performance. He was reprimanded, however, for allowing his costs to get out of control. John was not25 sure what to do and has come to you for advice.26 Complete the 2 Requirements below:1. Prepare a budget report based on flexible budget data to help John.2827Flexible Budget Report29 2. Should John have been reprimanded? Explain.30

In this question, we have to make a flexible budget report.

Answered: As sales manager, John was given the…

Business

Accounting

As sales manager, John was given the Dunham Company for the month of C

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.1E: Budget performance reports for cost centers Partially completed budget performance reports for...

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