Stauc Budget versus Nienble Audget The production superviser of the Machining Departmenc for Celtic Company agreed to the following monthiy static budpet for the upcoming vear: The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been less than the monthly static budget of $698,000. However, the plant manager believes that the budget should not remain foxed for every month but should "flex* or adjust to the voliame of work that is produced in the Mochining Department. Additional budget information for the Machining Depstment is as fottowst a. Prepare a fiexble budget for the actual units produced for January, February, and March in the Machining Department. Assume that depreciation is a fixed cost. If required, use per unit amounts carried out to two declmat places. Celtic Company-Machining Department. Flexible Production Budget b. Compare the fexible 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