Hagerstown Company Machining Department Monthly Production Budget
Wages	$2,250,000
Utilities	72,000
Depreciation	36,000
Total	$2,358,000

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	$1,600,000		40,000
June	1,950,000		48,000
July	2,200,000		52,000

The Machining Department supervisor has been very pleased with this performance because actual expenditures for MayJuly have been significantly less than the monthly static budget of $2,358,000. 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	$25.00
Utility cost per direct labor hour	$0.80
Direct labor hours per unit	1.5
Planned monthly unit production	60,000

a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places.

May

June

July

Units of production

40,000

48,000

52,000

?

$ ?

?

?

?

?

?

?

?

?

?

?

Total

?

?

?

Supporting calculations:

Units of production

40,000

48,000

52,000

Hours per unit

?

?

?

Total hours of production

?

?

?

Wages per hour

?

?

?

Total wages

?

?

?

Total hours of production

?

?

?

Utility costs per hour

?

?

?

Total utilities

?

?

?