Static budget versus flevible budget The production supervisar of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming vear: 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 because actual expenditures for May-july have been significantly less than the monthly static budget of 320,000 . However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume of work that is produced in the Machining Deportment. Additional budget information for the Machining Department is as follows: a. Prepare a fiexble budget for the actual units produced for Moy, June, and July in the Machining Department. Assume depreciation is a fixed cost. If required, use per unt amounts carried out to two decimal places. Hagerstown Company a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. b. Compare the fexible budget with the actuat expenditures for the first three manths: b. Compare the fexoble 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