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.

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 jncrease his salary from $$4,500$ in August to $$5,000$ in November. Rent, utilities, and marketing costs are not expected to change.

IngredientsFlourButter$0$ilFruitNutsChocolateOtherTotal ingredientsLaborChannel managerOtherUtilitiesRentMarketingFor the Month Ending August $31$ActualTotal bakery costsRevenuesTHE AM BAKERYBakery SalesActual CostS$ $3,9003,5001,7001,300900800400$$ $12,500$$ $4,50010,7002,4003,600200$$ $33,900$$ $52,200$Budgeted$ $3,7003,4001,8001,000800800300$$ $11,800450010,9002,3003,600100$$ $33,200$$ $52,200$Difference$ $200100(100)300100100$$ $700(200)100100$$ $700$