Hagerstown Company

Machining Department Budget

For the Three Months Ending July $31$ b$.$ Compare the flexible budget with the actual expenditures for the first three months.

What does this comparison suggest?

The Machining Department has performed better than originally thought.

The department is spending more than would be expected.Static Budget versus Flexible 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

The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows:

Machining Department is as follows:

places.