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Assume that The AM Bokery is preparing a budget for the month ending October 31 . Management prepares the budget by starting with the actuaf

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Assume that The AM Bokery is preparing a budget for the month ending October 31 . Management prepares the budget by starting with the actuaf results for August 31 Next, management considers whot the differences in costs will be between August and Octobe Management expects roverue in October to be 15 percent mote than in Magust, and it expects all ingredient costs fe 9 . flour, butrec and so on) to be 15 percent higher in October than in August. Management expects "other labor costs to be 20 percent highes in October than in August. party because mote labor wil be required in October and partly because employecs will recelve a pay rake The manoger wal receive a pay rase that will increase his salary from $6,500 in August to $7200 in October fent, utintes, and inarketing costs are not expected to change Required: Prepare a budget for The AM Bakery for October \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ THE AM BAKERY } \\ \hline \multicolumn{4}{|c|}{ Bakery Sales } \\ \hline \multicolumn{4}{|c|}{ Budgeted Costs } \\ \hline \multicolumn{4}{|c|}{ For the Month Ending October 31} \\ \hline & \multicolumn{2}{|c|}{\begin{tabular}{l} Actual \\ (August) \end{tabular}} & \begin{tabular}{l} Budgeted \\ (October) \end{tabular} \\ \hline \multicolumn{4}{|l|}{ Ingredients } \\ \hline Flour & $ & 5,900 & \\ \hline Butter & & 5,500 & \\ \hline Oil & & 3,700 & \\ \hline Fruit & & 3,300 & \\ \hline Nuts & & 2,900 & \\ \hline Chocolate & & 1,800 & \\ \hline Other & & 1,400 & \\ \hline Total ingredients & $ & 24,500 & \\ \hline \multicolumn{4}{|l|}{ Labor } \\ \hline Channel manager & $ & 6,500 & \\ \hline Other & & 12,700 & \\ \hline Utilities & & 4,400 & \\ \hline Rent & & 5,600 & \\ \hline Marketing & & 1,200 & \\ \hline Total bakery cost & $ & 54,900 & \\ \hline Revenues & $ & 72,200 & \\ \hline \end{tabular}

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