AaaA EX 21-3. Static budget versus flexible budget Obj. 2, 4The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year Niland Company Wages $1,125,000 50,000 1265,000 otal. The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows anuary February Manch The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been significantly less than the monthly static budget of $1,265,000. 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 Machining Department. Additional budget information for the Machining Department is as follows: $1500 Wages per hour Utility cost per direct labor hou Direct laboe hours per unit Planned monthly unit peoduction 5: 30