Answer:
Soria Company
Clothing Department
Selling Expense Flexible Budget Report for the month ended October 31, 2017: (Joe Batista)
                                     Budget     Actual      Variance      Comment
Sales in units              10,000      10,000        0                  Neither
Flexed Variable Expenses:
Sales Commission     $2,400     $2,400       0                  Neither
Advertising Exp.         $1,200        $900        $300           Favorable
Travel Expense          $4,000    $4,000        0                  Neither
Free Samples            $2,300     $1,300        $1,000          Favorable
Total Variable            $9,900    $8,600        $1,300          Favorable
Fixed Expenses:
Rent                           $1,700      $1,700         0                   Neither
Sales Salaries            $1,100      $1,100          0                   Neither
Office Salaries            $800        $800          0                  Neither
Depreciation               $400        $400          0                  Neither
Total Fixed               $4,000     $4,000          0                  Neither
Total  Expenses     $13,900    $12,600         $1,300          Favorable
Explanation:
a) Budgeted Variable Costs were flexed as follows:
i) Sales Commission = $1,872/7,800 x 10,000 = $2,400
ii) Advertising Expenses = $936/7,800 x 10,000 = $1,200
iii) Travel Expense = $3,120/7,800 x 10,000 = $4,000
iv) Free Samples = $1,794/7,800 x 10,000 = $2,300
b) The fixed costs could not be flexed as they remain invariable no matter the activity level.
c) Flexible budget is a budget that adjusts or flexes with changes in volume or activity.  It is a more accurate way of assessing performance because it is based on actual volume or activity level unlike a static budget, which remains unchanged.