Hagerstown Companya. 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.

Hagerstown Company

Machining Department Budget

For the Three Months Ending July $31$

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:

Amount Spent Units Produced

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 $433,000.$ 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

Utility cost per direct labor hour

$$0\mathrm{.}90$

Direct labor hours per unit

$0\mathrm{.}25$

Planned monthly unit production

$77,000$

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 $433,000.$

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