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Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. Enter

Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. Enter all amounts as positive numbers. If required, use per unit amounts carried out to two decimal places.

Nell Company-Machining Department
Flexible Production Budget
For the Three Months Ending March 31, 2016
January February March
Units of production
Wages $ $ $
Utilities
Depreciation
Total $ $ $

b. Compare the flexible budget with the actual expenditures for the first three months.

January February March
Total flexible budget $ $ $
Actual cost
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.

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