Static Budgot versus Flexible Budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following manthly static budget for the upcoming year: The actual smount spent and the octual units produced in the first three months in the Machining Depsitment were as follows: The Machining Depertment superrisor has been very pleased with this performence betayse sctual expenditures for Moy-July have been aignificantiy lest than the monthly static budget of 5:4,000. Honever, the plant manager believes that the budget thould not remain fixed for every month but theuld "flex' ar adjust to the volume of work that is produced in the Machiniog Department, Addetionst budget information for the Mackining Department is as follows: a. Prepare a fexible buidget for the actuol units produced for May, June, and July in the Machining Dapartment. Assume depreciation is a fired cost. If taquiesd, use per unit amounts carried out to two decimal places. b. Compare the flexible budget with the actual expenditures for the first three months. The Machining Department has performed better than originally thought. The department is spending more than would be expected