The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Ine actual amount spent ana 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 May-July have been significantly less Additional budget information for the Machining Department is as follows: 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 re Haqerstown Company b. Compare the flexible 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