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Static Budget versus Flexible Budget The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year: The octual amount spent and the octual units produced in the first three months in the Machining Department were as follows: The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been liess than the monthly static budget of $1,189,000. However, the plant mahager believes that the budget should not remain fixed for every month but should "Nlex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: s. Prepare a fexible budget for the actual units produced for January, February, and March in the Machining Department, Assume that depreciation is a foxed. cost. Enter all amounts as positive numbers. If required, use per unit amounts carried out to two decimas places. b. Compare the flexible budget with the actual expenditures for the first three months. wrnat aoes this comparison suggest? The Machining Department has performed better than originally thought. The department is spending more than would be expected

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