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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

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 $229,000
Utilities 14,000
Depreciation 24,000
Total $267,000
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 $252,00050,000
June 243,00046,000
July 230,00041,000
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 267,000. However, the plant manager believes that the budget should not remain fixed for every month but should flex or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:
Line Item Description Amount
Wages per hour $21.00
Utility cost per direct labor hour $1.30
Direct labor hours per unit 0.20
Planned monthly unit production 55,000
Question Content Area
a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places.

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