.EX.22.03 2. EX.22.03.ALGO 3. PR.22.01 ALGO . PR.22.02A Static Budget versus Flexible Budget The production supervisor of the Machining Department for Celtic Company agreed to the following monthly static budget for the upcoming year: Celtic Company Machining Department Monthly Production Budget Wages Utilities $945,000 56,000 Depreciation Total 93,000 $1,094,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: January February March Amount Spent Units Produced $1,031,000 986,000 942,000 102,000 93,000 84,000 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 $1,094,000. However, the plant manager believes that the budget should not remain fixed for every month but should "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 Direct labor hours per unit Planned monthly unit production $1.00 0.50 112,000 a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume that depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. Celtic Company-Machining Department Flexible Production Budget For the Three Months Ending March 31 January February Units of production 102,000 93,000 Progress: 2/4 items Check My Work algnment Score: 57.5% March 84,000 All work saved. Previous Next Email Instructor Save and Exit Submit Assignment for Grading