Statie budget versus flexible 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 actual units produced in the first three months in the Machingg Department were as follows: The Machining Department supervisor has been very pleased with this performiance becautf actual expendidures for May-July have been significantiy less than the monthiy static bugget of 314,000 . However, the plant manager bebtves that the budget whould not remein foxed for every month but thould "tiex" or adjust to the volume of work that is The Machirung Department supervisor has been very pleased with this performance because actual expenditures for May-luly have been sign ficantly less than tie monthly stat budget of 314,000 . However, the plant manager believes that the budget should not remain fixed for every month but should "flex' or adjust to the volume of woek that is produced in the Machining Department. Additionai budget information for the Machining Department is as follows: a. Prepare a flesible budget foc the actual units produced for May, June, and fuly in the Machining Depsrtment, Assume depreciation is a fixed cost. If required, use per and amourts carned out to two decimal places. b. Compare the flexoble budpet with the actual expenditures for the first three months, b. Compare the flexible budget with the actual expenditures for the first three months. The Machining Department has performed better than onginally thought: The department is spending more than would be expected