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Static Budget versus edible Budget The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year: Niland Company Machining Department Monthly Production Budget Wages 5526,000 Utilities 28.000 Depreciation 46,000 Total 3600,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced January $565,000 127,000 February 536,000 115,000 March 513,000 104.000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been less than the static budget of $600,000. However, the plant manager believes that the budget should not remain fived for every month but should flexor adjust to the work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour $19.00 Utility cost per direct labor hour $1.00 Direct labor hours per unit 0.20 Planned monthly unit production 138,000 a. Prepare a exible budget for the actual units produced for January February, and March in the Machining Department. Assume that depreciation is a free Enter all amounts as positive numbers. If required, use per unit amounts carried out to two decimal places. Niland Company Machining Department Flexible Production Budget For the Three Months Ending March 31 January February March Units of production 127,000 115,000 100.000 Wages Uites Depreciation Total b. Compare the flexible budget with the actual expenditures for the first three months. January February March Total flexible budget Actual cost Check My Work more Check My Work uses remaining Previous signment Score: All work saved Save and Exit Sunt siger Type here to search 5600.000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced 5565.000 127,000 February 536,000 115,000 March 513.000 104.000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January March have been less than the monthly static budget of $600,000. However, the plant manager believes that the budget should not remain feed for every month but should lexor adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour $19.00 Utility cost per direct labor hour Direct labor hours per unit 0.20 Planned monthly wit production 138,000 a. Prepare a flexible budget for the actual units produced for January February, and March in the Machining Department. Assume that depreciation is a feed cost. Enter all amounts as positive numbers. If required, use per unit amounts carried out to two decimal places Niland Company Machining Department Flexible Production Budget For the Three Months Ending March 31 January February March Units of production 127.000 115.000 104,000 Wages Us Depreciation Total b. Compare the exible budget with the actual expenditures for the first three mon January February March Totale budget Actual cost Excess of actual contover budgets What does this comparison suggest? The Machining Department has performed better than originally thought The department is spending more than would be expected Previous Ned more Check My Works remaining Al wat Submit Assignment for Grading 1 Type here to search o
