Question

For the Month Ending August 31 Actual Ingredients Flour $ 3,952 Butter 3,552 Oil 1,856 Fruit 1,456 Nuts 952 Chocolate 1,860 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., fu 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.)

Answer 1

Budgeted cost sheet for November (based on data of August)
Particulars	August - Actuals	Budget for November	Calculation	Remarks
Ingredients
Flour	$           3,952	$              4,940	(3952 x 125/100)	25 percent higher in November than August
Butter	$           3,552	$              4,440	(3552 x 125/100)	25 percent higher in November than August
Oil	$           1,856	$              2,320	(1856 x 125/100)	25 percent higher in November than August
Fruit	$           1,456	$              1,820	(1456 x 125/100)	25 percent higher in November than August
Nuts	$               952	$              1,190	(952 x125/100)	25 percent higher in November than August
Chocolate	$           1,060	$              1,325	(1060 x125/100)	25 percent higher in November than August
Other	$               660	$                 825	(660 x 125/100)	25 percent higher in November than August
Total Ingredients	$         13,488	$           16,860		25 percent higher in November than August
Labour
Channel Manager	$           5,150	$              5,650		Increased to 5650
Other	$         10,830	$           14,079	(10830 x 130/100)	30 percent higher than that of August
Utilities	$           2,660	$              2,660		No change . Fixed costs
Rent	$           3,860	$              3,860		No change . Fixed costs
Marketing	$               200	$                 200		No change . Fixed costs
Total Bakery Costs	$         36,188	$           43,309
Revenues	$         52,850	$     68,705.00	(52850 x 130/100)	30 percent higher than that of August
Profit ( Revenue - Costs )	$         16,662	$           25,396

The actual cost data for the month of November is not available. Kindly provide the information to prepare the comparative statement of budgeted and actual costs for November.