Savod Help Save Exercise 1-33 (Algo) Cost Data for Managerial Purposes - Budgeting (LO 1-3) 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 10 percent more than in August, and it expects all ingredient costs (eg, flour, butter and so on) to be 10 percent higher in October than in August. Management expects "other" labor costs to be 15 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 $6,100 in August to $6760 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 $ 5.500 5.100 Butter o search work Budgeted Costs For the Month Ending October 31 Actual (August) Budgeted (October) Ingredients Flour $ Butter Oil Fruit 5,500 5,100 3,300 2.900 2.500 1.600 1.200 22.100 $ CA Nuts Chocolate Other Total ingredients Labor Channel manager Other $ Utilities Rent Marketing Total bakery cost Revenues 6.100 12 300 4.000 5.200 1000 50 700 5 5 0 68.200 Prey e to search o