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 5815,000 Utilities 53,000 Depreciation 88,000 Total $956,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Units Produced Spent January 5902,000 88,000 February 861,000 80,000 March 821,000 72.000 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 $956,000. 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: $17.00 Wages per hour Utility cost per direct labor hour $1.10 Direct labor hours per unit 0.50 Planned monthly unit production 96.000 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 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-Machining Department Flexible Production Budget For the Three Months Ending March 31 January February March Units of production 88,000 80,000 72,000 Wages 748,000 680,000 612,000 Utilities 48,400 44,000 39,600