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 AM BAKERY
Bakery sales
Actual and Budgeted Costs
For the Month Ending August 31
	Actual
Ingredients
Flour	$	3,944
Butter		3,544
Oil		1,832
Fruit		1,432
Nuts		944
Chocolate		1,020
Other		620
Total ingredients	$	13,336
Labor
Channel manager	$	5,050
Other		10,810
Utilities		2,620
Rent		3,820
Marketing		200
Total bakery costs	$	35,836
Revenues		52,750

Management expects revenue in November to be 30 percent higher than in August, and it expects all ingredient costs (e.g., 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 $5,050 in August to $5,550 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.)

THE AM BAKERY Bakery sales Actual and Budgeted Costs For the Month Ending November 30