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 $ 3,936 Butter 3,536 Oil 1, 808 Fruit 1,408 Nuts 936 Chocolate 980 Other 580 Total ingredients $ 13, 184 Labor Channel manager $ 4,950 Other 10,790 Utilities 2.580 Rent 3, 780 Marketing 200 Total bakery costs $ 35,484 Revenues 52,650 enue in November to be 30 percent higher than in August, and it expects all ingredient costs (eg, flour, 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 increase his salary from $4,950 in August to $5,450 in November. Rent, utilities, and marketing costs are not expected to change. Now, fast forward to early December and assume the following actual results occurred in November: 31 Required: a. Prepare a statement that compares the budgeted and actual costs for November (Negative amounts should be indicated by a minus sign.) THE AM BAKERY Bakery sales Actual and Budgeted Costs For the Month Ending November 30 Actual Budgeted Difference $ Ingredients Flour Butter Oil Fruit 5,040 4,690 2.120 1,640 1,290 1,300 640 16,720 $ Nuts Chocolate Other Total ingredients Labor Channel manager Other Utilities Rent Marketing Total bakery costs Revenues $ + 5,450 14,282 2,580 3,780 200 43,012 68,675 $ b. Suppose that you have limited time to determine why actual costs are not the same as budgeted costs. Which three cost items would you investigate to see why actual and budgeted costs are different? O Nuts, flour, and utilities O Butter, other labor and oil O Flour, nuts, and butter