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: The actual amount spent and the gctual units produced in the first three months in the Machining Department were as foliows: The Machining Department supervisor has been very pleased with this performance because actual expenditures for May-July haye been significantly less than the monthly static budget of 420,000 , 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 budgot information for the Machining Department is as follows: unit amounts carried out to two decimal places. b. Compare the flexible budget with the actual expenditures for the first three months. The Mochining Department has performed better than originally thought. The deportment is spending more than would be expected