a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. Hagerstown Company Machining Department Budget For the Three Months Ending July 31 Line Item Description Units of production May 94,000 June 85,000 July 77,000 Total Supporting calculations: Units of production Hours per unit Total hours of production Wages per hour Total wages Total hours of production Utility costs per hour Total utilities x S 94,000 85,000 77,000 b. Compare the flexible budget with the actual expenditures for the first three months. Total flexible budget Actual cost Excess of actual cost over budget What does this comparison suggest? May June July