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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

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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. Monagement expects revenue in November to be 30 percent higher than in August and it expects all ingredient costs (e. 9 . flour. butter and so on) to be 25 percent higher in November than in August Maragemenk expects "other" labor costs to be 30 percent higher in November than in August, parly 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 (e.g, flour. butter, and 50 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 $4.600 in August to $5.100 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: o. Prepare a statement that compares the budgeted and actual costs for November. (Negative amounts should be indicated by o minus sign.) 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 actuol and budgeted costs are different? Flouf, ruts, and butter Butter other fobor and oil Nuts, flour, and utitites

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