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Assume that The AM Bakery is preparing a budget for the month ending November 30. Management prepares the budget by starting with the actual results for August that is shown below. Then, management considers what the differences in costs will be between August and November THE BAKERY Bakery sales Actual and Budgeted conta For the Month Ending August 31 Actual Ingredients Flour $ 3,956 Butter 3,556 Dil 1,868 Fruit 1,468 Nuta 956 Chocolate 1,080 Other 680 Total ingredients $ 13,564 Labor Channel manager $ 5,200 Other 10,840 Utilities 2.680 Rent 3,880 Marketing 200 Total bakery costs $ 36,364 Revenues 52.900 Management expects revenue in November to be 30 percent higher than in August, and it expects all ingredient costs (eg, flour, butter, and so on) to be 25 percent higher in November than in August. Management expects "other" labor costs to be 30 percent higher in November than in August, partly because more labor will be required in November and partly because employees will get a pay raise. The manager will get a pay raise that will increase his salary from $5,200 in August to $5.700 in November. Rent, utilities, and marketing costs are not expected to change. Now, fast forward to early December and assume the following actual results occurred in November. Required: a. Prepare a statement that compares the budgeted and actual costs for November (Negative amounts should be indicated by a minus sign.) Ched Required: a. Prepare a statement that compares the budgeted and actual costs for November. (Negative amounts should be indicated by a minus sign.) THE AM BAKERY Bakery bales Actual and Budgated Conta For the Month Ending November 30 Actual Budgeted Difference $ 5,090 4,740 2,170 1.690 1,340 1.450 740 Ingredients Flour Butter Oil Fruit Nuts Chocolate Other Total ingredients Labor Channel manager Other Utilities Rent Marketing Total bakery costs Revenues $ 17,220 $ 5,700 14,372 2,680 3,880 200 44,052 69,050 $ b. Suppose that you have limited time to determine why actual costs are not the same as budgeted costs. Which three cost items would you investigate to see why actual and budgeted costs are different? b. Suppose that you have limited time to determine why actual costs are not the same as budgeted costs. Which three cost items would you investigate to see why actual and budgeted costs are different? O Butter, other labor and oil Nuts, flour, and utilities Flour, nuts, and butter