Assume that The AM Bakery is preparing a budget for the month ending October 31. Management prepares the budget by starting with the actua/results for August 31. Next, management considers what the differences in costs will be between August and October Management expects revenue in October to be 10 percent more than in August, and it expects all ingredient costs (e.g., four, butter. and so on) to be 10 percent higher in October than in August. Management expects "other" labor costs to be 20 percent higher in October than in August, partly because more labor will be required in October and partly because employees will receive a pay raise. The manager will receive a pay raise that will increase his salary from $5.600 in August to $6,210 in October. Rent, utilities, and marketing costs are not expected to change. Required: Prepare a budget for The AM Bakery for October Budgeted (October) Houtu. Prepare a budget for The AM Bakery for October THE AM BAKERY Bakery Sales Budgeted Costs For the Month Ending October 31 Actual (August) Ingredients Flour 5,000 Butter 4.800 2,800 Fruit 2,400 Nuts 2.000 Chocolate 1,350 Other 950 Total ingredients 19,100 Labor Channel manager 5.600 Other 11.890 Utilities 3.500 Rent 4,700 Marketing Total bakery cost 45.450 Revenues 750