The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming on Niland Company Machining Department Monthly Production Budget Wages 51,019,000 Utilities 49,000 Depreciation 81,000 Total $1,149,000 The actual amount spect and the actual units produced in the host three months in the Machining Department were as follows: Amount Spent Units Produced January $1.081.000 19.000 February 1.030,000 11,000 March 151,000 73,000 The Machining Department supervisor has been very pleased with this performance become actual expenditures for January March have been less than the monthly state budget of $1,149,000, the plant manager believes that the budget should not mainted for every month but should exor adjust to the volume of work that is produced in the Machining Department Additional budget information for the Machining Department is as follow Wages per hour 521.00 ty cost per direct labor hour ST:00 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January March have been less than the monthly state budget of $1,149,000. However, the plant manager believes that the budget should not remained for every month but should flexor adjust to the volume of work that is produced the Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour $21.00 $1.00 Utility cost per direct labor hour 0.50 Direct labor hours per unit Planned monthly unit production 97.000 a. Prepare a feble budget for the actual units produced for January February, and March in the Machining Department. Assume that deprecationis fed cost inter all amounts as positive numbers. If required, use per unit amounts carried out to two decimal places Niland Company Machining Department Flexible Production Budget For the Three Months Ending March 31 January February March Units of production Wages Us Depreciation Total b. Compare the flexible budget with the actual expenditures for the first three months January February March a. Prepare a flexible budget for the actual units produced for January February, and March in the Machining Department. Assume that depreciation is fixed cost inter all amounts as positive numbers. If required, use per unit amounts corned out to two deomal places Niland Company Machining Department Flexible Production Hudget For the Three Months Ending March 31 January February March Units of production Wages Utilities Depreciation Total b. Compare the fleste budget with the actualites for the first three months January February March total flexible budget Actual cost Excess of actual cost ever budget What does this comparison suggest? The Machining Department has performed better than originally thought. The department is spending more than would be expected