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.

THE AM BAKERY Bakery Sales

Actual Costs

For the Month Ending August $31$

Ingredients

Flour

Butter

$0il$

Fruit

Nuts

Chocolate

other

Total ingredients

Labor

Channel manager

Other

utilities

Rent

Marketing

Total bakery costs

Revenues

Management expects revenue in November to be $30$ percent higher than in August, and it expects all ingrecient 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