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 $1,056,000 Utilities 72,000 Depreciation 121,000 Total $1,249,000 The actual amount spent and the actual unlts produced in the first three months in the Machining Department were as follows: Amount Units Spent Produced January $1,179,000 102,000 February 1,129,000 93,000 March 1,081,000 84,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for JanuaryMarch have been less than the monthly static budget of $1,249,000. However, the plant manager believes that the budget should not remain xed 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 $19.00 Utility cost per direct labor hour $1.30 Direct labor hours per unit 0.50 Planned monthly unit production 112,000 a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume that depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. Celtic Company-Machlnlng Department Flexible Production Budget For the Three Months Endlng March 31 January February March Units of production $ $ $ Wages Utilities Depreciation Total hltpsjiv2roengagenowsomr'ilnmkeAssignmentftakeAssiymenMain.do'nvukcrrhmkeAssignmenlSecsionLocalor=&inprogress=false 11'2 61'231'2021 CengageNOWvZ | Unline leaching and learning resource from Cengage Lgaming $ $ $ 1:. Compare the exible budget with the actual expenditures for the rst three months. January February March Actual cost $ $ $ Total exible budget Excess of actual cost over budget $ $ $ What does this comparison suggest? The Machining Department has performed better than originally thought. The department is spending more than would be expected