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 3,964

Butter 3,564

oil 1,892

Fruit 1,492

Nuts 964

Chocolate 1,120

Other 720

Total ingredients $ 13,716

Labor

Channel manager $5,309

Other 10,860

Utilities 2,720

rent 3,920

Marketing 200

Total bakery costs 36,716

Revenues 53,000

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 poy raise. The manager will get a pay ralse that will increase his salary from $5,300 in August to $5,800 In November. Rent, utilitles. and marketing costs are not expected to change.

Now, fast forward to early December and assume the following actual results occurred in November

prepare a statement that compares the budget and actual cost for November

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 IM BAKERY very tales Actual and budgeted costs For the Month Ending August 33 Actual Ingredients flour 3,364 1,892 1,402 36 Chocolat 1.220 other Total de 5 11.10 15. 1 2,720 . $16.21 Management expects revenue in November to be 30 percent higher than in August, and it expect all ingredient conteleg Hour butter and so on to be 25 percent higher in November thon maugust Management expects other obor con to be 30 percent Higher in November than in August, partly because more labor wur De recured in November and partly because employees will get a payme The manager will get a payrols that will increase his colory from $5.300 in August to 55.800 in November Rente and marketing costs are not expected to change Now for forward to only December and blue me following actual recuits occurred in November Required Required: a. Prepare a statement that compares the budgeted and actual costs for November (Negative amounts should be indicated by minus slgn.) THE AM BAKERY Bakery sales Actual and Budgeted Costs For the Month Ending November 30 Actual Budgeted Difference Ingredients Flour Butter Oil 5 5.110 4,760 2.100 1.710 1360 1.510 780 17.420 5 Frult Nuts Chocolate Other Total ingredients Labor Channel manager Other Utiles Rent Marketing Total bakery costs Revenues 5.800 14.408 2720 3,020 200 44.480 09 200 5 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 IM BAKERY very tales Actual and budgeted costs For the Month Ending August 33 Actual Ingredients flour 3,364 1,892 1,402 36 Chocolat 1.220 other Total de 5 11.10 15. 1 2,720 . $16.21 Management expects revenue in November to be 30 percent higher than in August, and it expect all ingredient conteleg Hour butter and so on to be 25 percent higher in November thon maugust Management expects other obor con to be 30 percent Higher in November than in August, partly because more labor wur De recured in November and partly because employees will get a payme The manager will get a payrols that will increase his colory from $5.300 in August to 55.800 in November Rente and marketing costs are not expected to change Now for forward to only December and blue me following actual recuits occurred in November Required Required: a. Prepare a statement that compares the budgeted and actual costs for November (Negative amounts should be indicated by minus slgn.) THE AM BAKERY Bakery sales Actual and Budgeted Costs For the Month Ending November 30 Actual Budgeted Difference Ingredients Flour Butter Oil 5 5.110 4,760 2.100 1.710 1360 1.510 780 17.420 5 Frult Nuts Chocolate Other Total ingredients Labor Channel manager Other Utiles Rent Marketing Total bakery costs Revenues 5.800 14.408 2720 3,020 200 44.480 09 200 5