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 $1,099,000 Utilities Depreciation Total 52,000 85,000 $1,239,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced May June $1,167,000 1,119,000 July 1,062,000 95,000 88,000 79,000 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 1,239,000. 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 Department. Additional budget information for the Machining Department is as follows: Wages per hour $21.00 Utility cost per direct labor hour Direct labor hours per unit $1.00 0.50 105,000 Planned monthly unit production Propere flexible budget for the actual unit produced for Men Juma, and July in the Maching Department feed required, sport came out to two de Hagerstown Co Machining Department Budget For the Three Months Ending July 31 units of prodati Tatal S Units of production Hopk Total hours of production Wager Total hours of production Ubility per hour Total May --- 100 July 751300 8,000 85,000 75,000 b. Compare the flexible budget with the actual expenditures for the first three months. Table Actual May Excess of actual cost over badge what does this w The Machining Department has performed better than originally thought. The department is spending more thee would be expected June July