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 $ 3,976 Butter 3,576 Oil 1,928 Fruit 1,528 Nuts 976 Chocolate 1,180 Other 780 Total ingredients $ 13,944 Labor Channel manager $ 5,450 Other 10,890 Utilities 2,780 Rent 3,980 Marketing Total bakery costs $ 37,244 Revenues 53,150 200 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 $5,450 in August to $5,950 in November Rent, utilities, and marketing costs are not expected to change. Na fet fann var arm the fall Andi Almar THE AM BAKERY Bakery sales Actual and Budgeted Costs For the Month Ending November 30 Actual Budgeted Difference Ingredients Flour Butter $ Oil Fruit 5,140 4,790 2,220 1,740 1,390 1,600 840 17,720 $ Nuts Chocolate Other $ Total ingredients Labor Channel manager Other Utilities $ 5,950 14,462 2,780 3,980 Rent 200 Marketing Total bakery costs evenues $ 45,092 69,425