eBook Show Me How SHTE VESUS The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming years Niland Company Machining Department Monthly Production Budget Wages $182,000 Utilities 10,000 Depreciation 16,000 Total $208,000 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 $195,000 49,000 February 184,000 44,000 March 177.000 40,000 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 $20,000. However, the plant manager believes that the budget should not remained for every month but shroud flex" or 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 $17.00 Utility cost per direct labor hour 50.90 Direct labor hours per unit 0.20 Planned monthly unit production 53,000 Check My Work a. Prepare a flexible budget for the actual units produced for a cary, February, and March in the Machining Department. Assume that depreciation is a fred cost. Enter all amounts as positive numbers. If required, use per unit amounts came out to two decimal places Nitand Company-Machining Department Flexible Production Budget For the Three Months Ending March 31 January February March Units of production Wages Utilities Deprecation Total b. Compare the lexible budget with the actual expenditures for the first three months ther exible January February March Total Meble budget Actual cost Excess of actual cost over budget What does this comparison suggest? The Machining Department has performed better than originally thought The department is spending more than would be expected, Previous Next > Check My Work es for the first three months. February March $ ginally thought. Yes No Email