Static budget verbodge The production supervisor of the Machining Department for Celtic Company wyrued to the towing met state budget for de upcoming Celtic Company Machining Department Monthly Production Budget Wag $623,000 35,000 Deprecation 5.000 5716000 The actual amount went and the actual units produced the first three months in the Machining Date Am Spet Produced 5674,000 127,000 135.000 315.000 104.000 Us 1.000 Hoc Department We 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 5715,000. However the plant manager believes that the budget should not remain flued for every month but should heet or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour $18.00 Utility cost per direct labor hour $1.00 Director hours perunt 025 and montent production 138.000 2. Prepare a tentle budget for the actual units produced for January, February, and March in the Machining Department Anime that depreciation is a feed cout. Irequired, wie per unit amounts carried out to two decimal places. Celtic Company Machining Department exible Production Budget for the Three Months Ending Mach31 Orary February Units of product W Hard Der Combudsdal of TORTY Units of production Wages Utilities Depreciation Total b. Compare the flexible budget with the actual expenditures for the first three months. January February March Actual cost Total Texible budget 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