Niland Company Machining Department Monthly Production Budget Wages $614,000 Utilities 25,000 Depreciation 42,000 Total $681,000 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 $641,000 120,000 February 613,000 117,000 March 580,000 105,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been less than the monthly static budget of $681,000. 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 $22.00 Utility cost per direct $0.90 labor haur Direct labor hours 0.20 per unit Planned monthly unit 140,000 production . , . a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume that depreciation is a fixed cost. Enter all amounts as positive numbers. It mequired, use per unit amounts carried out to two decimal places. Niland Company-Machining Department Flexible Production Budget For the Three Months Ending March 31 January February March Units of production Wages Utilities Depreciation Tatal b. Compare the flexible budget with the actual expenditures for the first three months. January February March Total flexible budget $ $1 Actual cost Excess of actual cost over budget $