Static Budget versus Alexible Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the foliowing monthly stabc budget for the upcoming yeari The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: The Machining Department supervisor has been very pleased with this performance becouse actual expenditures for May-july have been significamiy less than the monthly static budget of 642,000 . However, the plant manoger believes that the budget should not remain fixed for every month but ahould *hex" or adjust to the volume of work that is produced in the Machining Department. Additicnal budget information for the Machining Department is as foliows: a. Prepare a flexble budget for the actual units produced for May, June, and July in the Machining Department. Assume depreciation is a foxed cost. If required, use per unit amounts carried out to two decimal places. b. Compare the fiexible budget with the actuat expenditures for the first three months. b. Compare the flexible budget with the actual expenditures for the first three months. The Machining Department has performed better than originally thought. The department is spending more than would be expected