Static budget versus flexible budget

The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the

Hagerstown Company

Machining Department Budget

For the Three Months Ending July $31$

Line Item Description

Units of production

Total

Supporting calculations:

Units of production

Hours per unit

Toges per hour

Total wages

Total hours of production

Utility costs per hour

Total utilities

b$.$ Compare the flexible budget with the actual expenditures for the first three months.

Total flexible budget

Actual cost

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.upcoming year:

Hagerstown Company

Machining Department

Monthly Production Budget

$\backslash$table$[[$Wages$,$$$255,000$