Assume that The AM Bakery is preparing a budget for the month ending December 31. Management...

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Assume that The AM Bakery is preparing a budget for the month ending December 31. Management prepares the budget for the month ending December 31 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 December. THE AM BAKERY Bakery sales Actual and Budgeted Costs For the Month Ending August 31 Ingredients Flour Butter Oil Fruit Nuts Other Chocolate Total ingredients Labor Other Channel manager Utilities Rent Marketing Total bakery costs Revenues Actual $ 3,970 3,570 1,770 1,370 970 870 470 $ 12,990 $ 5,200 10,770 2,680 3,880 200 $ 35,720 52,900 Management expects revenue to be 100 percent greater in December than in August because of the holiday season. Management expects that all food costs (e.g., flour, butter, and so on) will be 120 percent higher in December than in August because of the increase in sales and because prices for ingredients are generally higher in the high demand holiday months. Management expects "other" labor costs to be 130 percent higher in December than in August, partly because more labor will be required in December and partly because employees will get a pay raise. The manager will get a pay raise that will increase his salary from $5,200 in April to $6,400 in December. Utilities will be 15 percent higher in December than in August. Rent and marketing will be the same in December as in August. Now, move ahead to January of the following year and assume the following actual results occurred in December: Required: a. Prepare a statement that compares the budgeted and actual costs. (Negative amounts should be indicated by a minus sign.) Assume that The AM Bakery is preparing a budget for the month ending December 31. Management prepares the budget for the month ending December 31 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 December. THE AM BAKERY Bakery sales Actual and Budgeted Costs For the Month Ending August 31 Ingredients Flour Butter Oil Fruit Nuts Other Chocolate Total ingredients Labor Other Channel manager Utilities Rent Marketing Total bakery costs Revenues Actual $ 3,970 3,570 1,770 1,370 970 870 470 $ 12,990 $ 5,200 10,770 2,680 3,880 200 $ 35,720 52,900 Management expects revenue to be 100 percent greater in December than in August because of the holiday season. Management expects that all food costs (e.g., flour, butter, and so on) will be 120 percent higher in December than in August because of the increase in sales and because prices for ingredients are generally higher in the high demand holiday months. Management expects "other" labor costs to be 130 percent higher in December than in August, partly because more labor will be required in December and partly because employees will get a pay raise. The manager will get a pay raise that will increase his salary from $5,200 in April to $6,400 in December. Utilities will be 15 percent higher in December than in August. Rent and marketing will be the same in December as in August. Now, move ahead to January of the following year and assume the following actual results occurred in December: Required: a. Prepare a statement that compares the budgeted and actual costs. (Negative amounts should be indicated by a minus sign.)