State Budget verse Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following money to budget for the upcoming year! Hagerstown Company Machining Department Monthly Production Budget $274,000 Lulties 24,000 Deprecation 40,000 Total 5338,000 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 119,000 67,00 June 306.000 61,000 July 293,000 55,000 The Machining Department supervisor has been very pleased with this performance ece actual expenditures for May-Julyve been record in the the money to 30.000 iowever, the Blant manager believes that the budget should not remain fixed for every month but should nex" or agust to the volume of work that is produced in the Machining Department to be interior Machining Departments follows Waes per hour $15.00 utility cost per direct labor hoe 31.30 Direct tabor hours per unit 0.25 Director haunt per nad mot production 0.25 73.000 de buget for the actual produced for May June and Buy in the Machining samen dat die Hagerstown Company Machining Department Budget For the Three Months Ending July 33 MAY June of production 67,000 61,000 July 55,000 67,000 $1.000 55.000 Supporti con Un of production Haun perit Tocal hours of production Total wages eBook Show Me How Supporting calculations Units of production Hours per unit 67,000 61,000 55,000 Total hours of production Wages per hour Total wages Total hours of production Utility costs per hour Total utilities b. Compare the flexible budget with the actual expenditures for the first three months. May June July 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