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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

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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ACCOUNTING

E24-8 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.

GARBER COMPANY
Clothing Department
Selling Expense Budget Report
For the Month Ended October 31, 2010

AND SO ON

As a result of this budget report, Terry 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. Terry 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.

Instructions
a) Prepare a budget report based on flexible budget data to help Terry.
b) Should Terry have been reprimanded?

 

FILE: MS WORD

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