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

The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows:

	Amount Spent		Units Produced
January	$1,100,000		80,000
February	1,200,000		90,000
March	1,250,000		95,000

The Machining Department supervisor has been very pleased with this performance because actual expenditures for JanuaryMarch have been significantly less than the monthly static budget of $1,265,000. 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:

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

a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places.

Niland Company
Machining Department Budget
For the Three Months Ending March 31
	January	February	March
Units of production	80,000	90,000	95,000
Wages	$	$	$
Utilities
Depreciation
Total	$	$	$
Supporting calculations:
Units of production	80,000	90,000	95,000
Hours per unit	x	x	x
Total hours of production
Wages per hour	x $	x $	x $
Total wages	$	$	$
Total hours of production
Utility costs per hour	x $	x $	x $
Total utilities	$	$	$

Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. Niland Company Machining Department Budget For the Three Months Ending March 31 January February 80,000 90,000 900,000 $1,012,500 Units of production Wages March 95,000 $1,068,750 Utilities 72,000 81,000 85,500 Depreciation 50,000 50,000 50,000 Total $ 1,022,000 $1,143,500 $1,204,250 Supporting calculations: Units of production 80,000 90,000 95,000 Hours per unit Total hours of production Wages per hour Total wages Total hours of production Utility costs per hour Total utilities