Me How Static Budget versus Flexible Budget The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year: Niland Company Machining Department Monthly Production Budget Wages Utilities Depreciation: $837,000 63,000 Total 106,000 $1,006,000 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 January February $950,000 915,000 March 872,000 96,000 88,000 79,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been significantly less than them monthly static budget of 1,006,000. 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 $16 Utility cost per direct labor hour $1.2 Direct labor hours per unit Planned monthly unit production 0.5 105,000 a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. If required, Check My Work