Stabic 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: The actual amount spent and the actual unis produced in the first three months in the Machining Department were as follows: The Machining Department wupervisor has been very pleased with this performance because actual expenditures for January-March have been less than the monthly static budget of $539,000. However, the plant manager believes that the budget should not remain fixed for every mpnth but thould "flex" or adjust to the volume of work that is produced in the Machining Department, Additienal budget information for the Machining Depsrtment is as follows: a. Prepare a flexble 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. H required, use per unit amounts carried out to two decimat places. Niland Company-Machining Department Flexible Production Budget b. Compare the fiexibie budget with the actual expenditures for the first three months. What does this compsitson suggest? The Machuing Depstement has peformed better than originally thought. The department is spending more then would be expected