eBook Show Me How State Budget versus Fiecible Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Hagerstown Company Machining Department Monthly Production Budget Wages $462,000 Utilities 26,000 Deprecation 44,000 Total $532,000 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 May $502,000 106,000 June 481,000 97,000 July 457.000 87,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for May July have been significantly less than the monthly static budget of 532,000. However, the plant manager believes that the budget should not remain fixed for every month but should lex 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 $16.00 Utility cost per direct labor hour $0.90 Direct labor hours per unit 0.25 Planned monthly unit production 116,000 1. Prepare a exible budget for the actual units produced for May June and July in the Machining Department. Assume depreciation is a flwed cost tr required, use per unit amounts carried out to two decimal places Check My Workmore Check My Working Next > a. Prepare a Meble budget for the actual units produced for May, June, and July in the Machining Department. Assumie depreciation is a fixed cost. It required, use per unit amounts carried out to two decimal places Hagerstown Company Machining Department Budget For the Three Months Ending July 31 May June July Units of production 106,000 97,000 87,000 Wages Utilities Depreciation Total Supporting calculations: Units of production Hours per unit 106,000 97.000 87.000 Total hours of production Wages per hour Total wages Total hours of production Uulity costs per hour Total utilities b. Compare the exible budget with the actual expenditures for the first three months. May June July Total exible budget Check My Workmore Check My Work unes remaining Next