Static budget versus fiexible budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: The actual amount spent and the actual units produced in the first three months in the Machining Depactment were as follows: The Machining Department supervisor has been very pleased with this performance because actual expenditures for May-July have been significantiy less than the monthiy static budget of 676,000 . However, the plant manager believes that the budget shouid not remain fixed for every month but should "Dex" or adjust to the voiume of work that is produced in the Machining Department. Additional budget information for the Machinting Department if as follows: a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department. Assume depreciavon is a foved cost, if required, use per unit amounts carried out to two decimal places