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 $ 3,920 Butter 3,520 oil 1,760 Frult 1,360 Nuts 920 Chocolate Other 500 Total ingredients $ 12,880 Labor Channel manager $ 4,750 Other 10,750 utilities 2,500 Rent 3,700 Marketing 200 Total bakery costs Revenues 52,450 Management expects revenue in November to be 30 percent higher than in August, and it expects all ingredient costs (eg four, 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 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 $4,750 in August to $5,250 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 minus sign) 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 $ 3,920 Butter 3,520 oil 1,760 Frult 1,360 Nuts 920 Chocolate Other 500 Total ingredients $ 12,880 Labor Channel manager $ 4,750 Other 10,750 utilities 2,500 Rent 3,700 Marketing 200 Total bakery costs Revenues 52,450 Management expects revenue in November to be 30 percent higher than in August, and it expects all ingredient costs (eg four, 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 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 $4,750 in August to $5,250 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 minus sign)
