Niland Company Machining Department Budget For the Three Months Ending March 31 January February Units of production 94,000 85,000 March 77,000 bund Total Supporting calculations: Units of production Hours per unit 94,000 85,000 77,000 Total hours of production Wages per hour Total wages 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. January February Total Nexible budget March Actual cost IN 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 February Static Budget versus Budget The production supervisor of the Machining Department for and company agreed to the following month stanic budget for the upcoming year Niland Company Machining Department Monthly Production Budget Wages $461,000 Utilities 26.000 Depreciation Total $530,000 The actual amount sent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced January 3499,000 94,000 474,000 85,000 March 454,000 27,000 The Machining Department superior has been very pleased with this performance because actual expenditures for January March have been incantly loss than the monthly static budget of 530,000. However, the plant manager believes that the budget should not remained for every month but shoulder to the volume of work that is produced in the Machining Department Additional budget information for the Machining Department is as follows: Winges per hour SH cost per direct labor hour 31 Director hours per unit 0.25 Parned monthly unit production 102,000 Prepare a exible budget for the actual units produced for January February, and March in the Machining Department. Asume depreciation is fed cont required, we per unit amounts carried out to two decalces Niland Company Machining Department Budget For the Three Months Ending March 31 January February March Units of roto 1,000 85,000 77.000