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 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 586,000 . 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. Add tional budget information for the Machining Department is as follows: a. Prepare a fiexible budget for the sctual units produced for May, June, and luly in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. 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 flexible budget with the actuat expenditures for the first three months. The Machining Department has performed better than originally thought. The department is spending more than would be expected. 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 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 586,000 . 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. Add tional budget information for the Machining Department is as follows: a. Prepare a fiexible budget for the sctual units produced for May, June, and luly in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. 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 flexible budget with the actuat expenditures for the first three months. The Machining Department has performed better than originally thought. The department is spending more than would be expected