Ch 1 Grading HW 6 4 points eBook References Seved Assume that The AM Bakery is preparing a budget for the month ending October 31. Management prepares the budget by starting with the actual 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 20 percent more than in August, and it expects all ingredient costs (e.g., flour, butter, and so on) to be 20 percent higher in October than in August. Management expects "other" labor costs to be 25 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 $5,700 in August to $6,320 in October, Rent, utilities, and marketing costs are not expected to change. Required: Prepare a budget for The AM Bakery for October THE AM BAKERY Bakery Sales Budgeted Costs For the Month Ending October 31 Actual Budgeted (August) (October) Ingredients Flour $ 5,100 Butter 4.700 Oll 2,900 Fruit 2,500 Nuts 2,100 Chocolate 1,400 Other 1,000 Total ingredients $ 19,700 $ Labor Channel manager $ 5,700 Other 11,900 Ubilities 3,600 Rent 4,800 800 Marketing Total bakery cost $ 46,500 $ $ 64.200 Revenues