Fundamentals of Cost Accounting: E1-20 Refer to Exhibit 1.5, which shows budgeted versus

Fundamentals of Cost Accounting

E1-20. Cost Data for Managerial Purposes—Budgeting
Refer to Exhibit 1.5, which shows budgeted versus actual costs.
Retail Responsibility Center
Budgeted Costs
For the Month Ending April 30
Actual Budget Difference
Flour 2,100 2,200 (100)
Eggs 5,200 4,700 500
Chocolate 2,000 1,900 100
Nuts 2,000 1,900 100
Other 2,200 2,200 -
Total food 13,500 12,900 600

Manager 3,000 3,000 -
Other 1,500 1,500 -
Total labor 4,500 4,500 0
Utilities 1,800 1,800 -
Rent 5,000 5,000 -
Total cookie costs 24,800 24,200 600
Number of cookies sold 32,000 32,000 -
Assume that Carmen's Cookies is preparing a budget for the month ending June 30. Management prepares the budget by starting with the actual results for April 30. Next, management considers what the differences in costs will be between April and June.
Management expects the number of cookies sold to be 15 percent greater in June than in April, and it expects all food costs (e.g., flour, eggs) to be 20 percent higher in June than in April. Management expects "other" labor costs to be 20 percent higher in June than in April, partly because more labor will be required in June and partly because employees will get a pay raise. The manager will get a pay raise that will increase the salary from $3,000 in April to $3,750 in June. Rent and utilities are not expected to change.

Prepare a budget for Carmen's Cookies for June. (Omit the "$" sign in your response.)
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