The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Hagerstown Company Machining Department Monthly Production Budget Line Item Description Amount Wages $1,036,000 Utilities 71,000 Depreciation 118,000 Total $1,225,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Month Amount Spent Units Produced May $1,156,000 100,000 June 1,104,000 91,000 July 1,055,000 82,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for MayJuly have been significantly less than the monthly static budget of 1,225,000. Howe