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The production supervisor of the Machining Department for Hagerstown Company agreed to the foliowing monthly...

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Accounting

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The production supervisor of the Machining Department for Hagerstown Company agreed to the foliowing monthly static budget tor the upooming year: The actual amount spent and the actual units produced in the first three manths in the Mechining Department were as follows: The Machining Department supervisor has been very pleased with this performance because actual expenditures for May-7uly have been aignificanthr leit than the morkhly static budget of 245.000. However, the plant manager believes that the budger should not remain fired for mevery month but shouid liex. or adjust to the wolumed of work that is produced in the Machining Department. Additonal budget information for the Machining Department is as lolows 3. Prepere a nexoble budget, for the actual units produced for May, June, and Nuly in the Machining Department, Assime deprecation a a fixed cost if iegered, uce per Whit amochets carried out to two decimat places

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