Static Bodget versus Flexible Budget The production supervisor of the Machining Department for Celtic Company agreed to the following monthly static budget for the upcoming year: Celtic Company Machining Department Monthly Production Budget Wages Utilities Depreciation Total $485,000 27,000 45,000 $557,000 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 February $525,000 09,000 501,000 477,000 81,000 73,000 March 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 $557,000. However, the plant manager believes that the budget should not remain fixed for every month but should "nex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: