Static budget versus flexoble budget. The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: The actual amount spent and the actubl units produced in the first three months in the Machining Department were as followis: The Machining Department superviage has been very pleawed with this performance because actual expenditures for May-July have been significantly less than the monthly static budget of 582,000. However, the plant manager believes that the budget should not remain fixed for every month but itould "flox" or adjust to the volum of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department. Assume dopreciation is a fixed cost. if required, use pe unit amounts carried out to two decimal places. b. Compsre the flexible budget with the actual expenditures for the first three months b. Compare the flexible budget with the actual expenditures for the first three months. What does this comparison suyyew? The Machining Department has performed better than originally thought. The department is spending more than would be expected. Static budget versus flexoble budget. The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: The actual amount spent and the actubl units produced in the first three months in the Machining Department were as followis: The Machining Department superviage has been very pleawed with this performance because actual expenditures for May-July have been significantly less than the monthly static budget of 582,000. However, the plant manager believes that the budget should not remain fixed for every month but itould "flox" or adjust to the volum of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department. Assume dopreciation is a fixed cost. if required, use pe unit amounts carried out to two decimal places. b. Compsre the flexible budget with the actual expenditures for the first three months b. Compare the flexible budget with the actual expenditures for the first three months. What does this comparison suyyew? The Machining Department has performed better than originally thought. The department is spending more than would be expected