static Budget versus flexible Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budpet for the upcoming vear: The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: The Machining Department fupervisor has been very pleased with this performance because actual expenditures for May-July have been sionificantly less than budget of \$76,000. However, the plant manager belleves that the budget should not remain fixed for every month but should "fiax" or adjust to the voluma of the Machining Department. Additional budget intormation for the Mactining Department is as follows: a. Prepare a flecible budget for the actual units produced for May, June, and July in the Mactining Department, Ansume depredation is a fixed cost. If requiret carried out to two decimal places. Prepare a flexible budget for the actual units prodsced for May, June, and July in the Machining Department. Assurne deoredaticn is a fixed cost. If required, inte per unit anouits ried out to two decimal places. The Machining Department has performed better than originally thought. The deparment is spending more than would be expected