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 375.000 uit 41.000 Depreciation 68.000 1864.000 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 $815.000 126,000 June 773.000 114.000 July 105.000 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 864,000, 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: We hou 122.00 ity cost per director how Direct laborio per unit 0.25 Poned monthly production 17/000 a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. Hagerstown Company Machining Department Budget For the Three Months Ending July 31 May June July Units of production 126,000 101.600 Sporting Unit of production 126.000 114,000 103.000 Talous of production Wages per hour