The production supervisor of the Machining Desertment for Hapertown Company agreed to the following monthly static budget for the upcoming year! Hagerstown Company Machining Department Monthly Production Budget Wages 5274.000 Uits 24.000 Depreciation Total $338,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were for Amount Spent Units Produced May $319,000 67,000 June 306,000 61,000+ 55.000 The Machining Department supervisor has been very pleased with the performance because actual expenditures for ay have been significantly less than the month ago 938,000. Hoever, the piant manager believes that the budget hodid not remain fixed for every month but should expor adjust to the volume of work that is produced in the Machining Department Additional taget information for the Machining Department is as follows: Wages per hour $15.00 cost per direct labornou $1.30 Direct labor hours per un 0.25 Planned monthly unit production 23,000 a. Prepare a flexible budget for the actual units produced for av. Jure, and is the Maching Department. Assumedereinstimet per nuts carried to places Hagerstown Company Machining Department Budget For the Three Months Ending July 31 May June July Units of production 67.000 61,000 55.000 671 61,000 5,000 Total Supporting calculation Units of production Hours per unit Total hours of production Wages per hour Total wages Total hours of production Unity costs per hour Total b. Compare the flexible budget with the actual expenditures for the first three months. May June July Total flexible budget Actual cost Excess of actual cost over budget What does this comparison suggest? The Machining Department has performed better than originally thought. The department is spending more than would be expected