The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows:

Additional budget information for the Machining Department is as follows:

Hagerstown Company

Machining Department Budget

For the Three Months Ending July $31$

b$.$ Compare the flexible budget with the actual expenditures for the first three months.

Total flexible budget

Actual cost

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