The production supervisor of the Painting Department for Whitley Company agreed to the following monthly static budget for the upcoming year: WHITLEY COMPANY Painting Department Monthly Production Budget Wages $425,000 Utilities 26.000 Depreciation 43,000 Total $494,000 The actual amount spent and the actual units produced in the first three months in the Painting Department were as follows: Amount Spent Units Produced Januar $466,000 52,000 February 450,000 48,000 March 427,000 43,000 The Painting Department supervisor has been very pleased with this performance, since actual expenditures have been less than the monthly budget. 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 Painting Department. Additional budget information for the Painting Department is as follows: Wages per hour $15.00 Utility cost per direct labor hour $0.90 Direct labor hours per unit 0.50 hrs. Planned unit production 57,000 units a. Prepare a flexible budget for the actual units produced for January, February, and March in the Painting Department. Assume depreciation is a fixed cost. Enter all amounts as positive numbers. If required, round per unit amounts to the nearest cent. WHITLEY COMPANY Painting Department For the Three Months Ending March 31 January February March Units of production 52,000 48,000 43,000 Wages Utilities Depreciation Total Feedback Check My Work a. For each level of production, show wages, utilities, and depreciation. Calculate the total wages by multiplying number of units produced by hours per unit, then by wages per hour. Calculate the total utilities by multiplying the total hours of production by the utility cost per hour. b. Compare the flexible budget with the actual expenditures for the first three months. January February March Actual cost Total flexible budget Excess of actual cost over budget