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 $1,125,000 Utilities 90,000 Depreciation 50,000 Total $1,265,000 In January, the Machining Department produced 95,000 units and spent $1,250,000, causing the supervisor to be pleased since the department was under budget. Additional budget information for the Machining Department is as follows: Wages per hour: $15.00 Utility cost per direct labor hour: $ 1.20 Direct labor hours per unit: 0.75 Planned monthly unit production 100,000 1. Prepare a flexible budget for the actual units produced for January. Assume that depreciation is a fixed cost. Flexible Budget Units produced Wages Utilities Depreciation Total 2. Based on your results from part 1, what is the variance between the flexible budget and actual results? Is the variance favorable or unfavorable