State Budget vs. Meble Budget The production supervisor of the Machining LET COMPANY Machining Department Monthly Production Budget Wages $1.440,000 Utilities 92,000 Depreciation 32,500 Total $1,564,500 The actual amount spent and the actual units produced the Machining January February March Amount Spent Units Produced $1,200,000 75,000 1,356,000 85,000 1,425,000 90,000 The Machining Department supervisor has manager believes that the budget should not remain Additional budget information for the Machining ss than the monthly budget. However, the plant ok that is produced in the Machining Department. Wages per hour Utility cost per direct labor hour Direct labor hours per unit 0.80 hrs. 100,000 units Planned unit production a. 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. LEI COMPANY Machining Department For the Three Months Ending March 31 January February March Units of production 75,000 85,000 $ 1,080,000 $ 1,224,000 Utilities 9.000T Depreciation $ 1,181,500 $ Wages 3131 UUUU Fe b. Compare the flexible budget with the actual expenditures for the first three months. January February March Actual cost Total flexible budget Excess of actual cost over budget What does this comparison sugabest? Has the Machining Department performed better than originally thought? Nov Is the department spending more than expected