Static Budget versus Flexible Budget The production supervisor of the Machining Department for Celtic Company agreed to the following monthly static budget for the upcoming year: Celtic Company Machining Department Monthly Production Budget Wages $$345,000$ Utilities $24,000$ Depreciation $40,000$ Total $$409,000$ 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 January $$386,00099,000$ February $369,00090,000$ March $352,00081,000$ The Machining Department supervisor has been very pleased with this performance because actual expenditures for January$$March have been less than the monthly static budget of $$409,000.$ However, the plant manager believes that the budget should not remain fixed for every month but should $$flex$$ or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour $$16\mathrm{.}00$ Utility cost per direct labor hour $$1\mathrm{.}10$ Direct labor hours per unit $0\mathrm{.}20$ Planned monthly unit production $108,000$