static budget vs flexiable budget

Statewid... https://mastercraftt... Hard to Find Lincolns Beachbody on Dem... Zoom Homepage eBook Show Me How Print Item Static Budget versus Flexible Budget The production supervisor of the Machining Department for Celtic Company agreed to the following mon Celtic Company Machining Department Monthly Production Budget Wages $446,000 Utilities 36,000 Depreciation 61,000 $543,000 Total The actual amount spent and the actual units produced in the first three months in the Machining Depar Amount Spent Units Produced January 128,000 February $514,000 494,000 471,000 117,000 March 105,000 The Machining Department supervisor has been very pleased with this performance because actual expe SSA eBook Show Me How Print Item March 471,000 105,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been less than $543,000. However, the plant manager believes that the budget should not remain fixed for every month but should flex" or adjust to the volume of w Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour $16.00 Utility cost per direct labor hour $1.30 Direct labor hours per unit Planned monthly unit production 140,000 0.20 a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume that depreciation is a 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 128,000 117,000 105,000 Wages Utilities Depreciation Total b. Compare the flexible budget with the actual expenditures for the first three months. Check My Work 2 more Check My Work uses remaining All work saved. Email Instructor Save and Ex 1006 For the Three Months Ending March 31 January February March Units of production 128,000 117,000 105,000 Wages Utilities Depreciation Total b. Compare the flexible budget with the actual expenditures for the first three months. January February March Actual cost Total flexible budget 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 Check My Work 2 more Check My Work uses remaining All work saved Email Instructor Save 100