The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year: Niland Company Machining Department Monthly Production Budget Wages $193,000 13,000 21,000 $227,000 Utilities Total and the actual units produced in the first three months in the Machining Department were as follows Amount Spent Units Produced January $214,000 February202,000 March 59,000 53,000 48,000 194,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been significantly less than the monthly static budget of 227,000. However, the plant manager believes that the budget should not remain foxed for every month but should "fiex or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows