For the Month Ending August 30
Ingredients
Actual
Flour
$ 3,952
Butter
3,552
Oil
1,856
Fruit
1,456
Nuts
952
Chocolate
1,060
Other
660
Total ingredients
$ 13,488
Labor
Channel manager
$ 5,150
Other
10,830
Utilities
2,660
Rent
3,860
Marketing
200
Total bakery costs
$ 36,188
Revenues
52,850
Management expects revenue in November to be 30 percent higher than in August, and it expects all ingredient costs (e.g., fl
butter, and so on) to be 25 percent higher in November than in August. Management expects \"other\" labor costs to be 30 per
higher in November than in August, partly because more labor will be required in November and partly because employees w
pay raise. The manager will get a pay raise that will increase his salary from $5,150 in August to $5,650 in November. Rent, util
and marketing costs are not expected to change.
Now, fast forward to early December and assume the following actual results occurred in November:
Required:
a. Prepare a statement that compares the budgeted and actual costs for November. (Negative amounts should be indicated by
minus sign.)