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 $ 3,912 Butter 3,512 1,736 1,336 oil Fruit Nuts 912 Chocolate 860 other 460 Total ingredients Labor Channel manager $12,728 $ 4,650 10,730 2,460 3,660 other utilities Rent Marketing Total bakery costs 200 $34,428 Revenues 52,350 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 ralse. The manager will get a pay raise that will increase his salary from $4,650 in August to $5,150 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: Requlred: a. Prepare a statement that compares the budgeted and actual costs for November. (Negative amounts should be Indicated by a minus sign.) 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 4,980 Butter 4,630 2,080 1,580 1.230 Oil Fruit Nuts Chocolate 1.120 520 16,120 $ Other Total ingredients Labor Channel manager 5,150 Other 14.174 Utilities 2,460 3,680 200 41,704 Rent Marketing Total bakery costs Revenues 68,225 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 Butter, other labor and oll Nuts, flour, and utilities O Flour, nuts, and butter