Hagerstown Company Machining Department Budget For the Three Months Ending July 31 Line Item Description Units of production Total Supporting calculations: Units of production Hours per unit Total hours of production Wages per hour Total wages May June July 124,000 113,000 102,000 124,000 113,000 102,000 X X X X X x S Total hours of production Utility costs per hour Total utilities x b. Compare the flexible budget with the actual expenditures for the first three months. Total flexible budget Actual cost May 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. June July