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 Wages Utilities Depreciation Total $430,000 23,000- 38,000 $491,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: May Amount Spent Units Produced $462,000 116,000 June 439,000 105,000 July 420,000 95,000