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 are shown below. Then, management considers what the differences in costs will be between August and November. THE AM BAKERY Bakery Sales Actual Costs For the Month Ending August 31 Actual Budgeted Difference Ingredients Flour $ 3,980 $ 3,764 $ 216 Butter 3,580 3,456 124 Oil 1,780 1,896 (116) Fruit 1,340 1,036 304 Nuts 916 832 84 Chocolate 816 816 - Other 416 304 112 Total ingredients $ 12,828 $ 12,104 $ 724 Labor Channel manager $ 4,540 4,540 - Other 10,780 11,100 (320) Utilities 2,460 2,344 116 Rent 3,660 3,660 - Marketing 220 116 104 Total bakery costs $ 34,488 $ 33,864 $ 624 Revenues $ 54,200 $ 54,200 - Management expects revenue in November to be (expression error) percent higher than in August, and it expects all ingredient costs (e.g., flour, butter, and so on) to be (expression error) percent higher in November than in August. Management expects other labor costs to be (expression error) 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 $4,540 in August to $5,040 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. THE AM BAKERY Bakery Sales Actual Costs For the Month Ending November 30 Actual Ingredients Flour $ 5,070 Butter 4,712 Oil 2,106 Fruit 1,590 Nuts 1,240 Chocolate 1,070 Other 476 Total ingredients $ 16,264 Labor Channel manager $ 5,040 Other 14,232 Utilities 2,460 Rent 3,660 Marketing 220 Total bakery costs $ 41,876 Revenues $ 70,620 Required: Prepare a statement that compares the budgeted and actual costs for November. 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?