Static budget versus flexible budget

The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year:

Hagerstown Company

Machining Department

Monthly Production Budget

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 $658,000.$ However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volum

of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:

Wages per hour

Utility cost per direct labor hour

Direct labor hours per unit

Planned monthly unit production

$$17\mathrm{.}00$

$$1\mathrm{.}10$

$0\mathrm{.}25$

$132,000$

a$.$ Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department. Assume depper unit amounts carried out to two decimal places.reciation is a fixed cost. If required, use