Static Budpet versus Fexible Budget The production supervisor of the Machining Department for Celtic Company agreed to the following monthly static budget for the upcoming yeart The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: The Mochining Department supervisor has been very pleased with this performance because actual expenditures for lanuary-March have been less than the monthly static budget of $787,000. However, the plant manager believes that the budget should not remain foxed for every month but should "flex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: a. Prepare a fexible budget for the actual units produced for January, February, and March in the Machining Department, Assume that depreciatich is a fixed cost. If required, use per unit amounts carried out to two decimal places. b. Compare the fiexible budget with the actual expenditures for the first three months. The Machining Department has performed better than originally thought: The department is spending mere than would be expected