Chapter 13 Static Budget vs. Flexible Budget The production supervisor of the Machining Department for Lei Company agreed to the following monthly static budget for the upcoming year: LEI COMPANY Machining Department The actual amount spent and the actual units Monthly Production Budget produced in the first three months in the Machining Wages Department were as follows: $1,440,000 Utilities Amount Spent Units Produced 92,000 Depreciation January $1,200,000 75,000 32,500 February 1,356,000 85,000 Total $1,564,500 March 1,425,000 90,000 Prepare a flexible budget report for the actual units produced. Additional budget information for the Machining Department is as follows: Wages per hour $18.00 Utility cost per direct labor hour $1.15 Direct labor hours per unit 0.80 hrs. Planned unit production 100,000 units Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. Enter all amounts as positive numbers. Compare the flexible budget with the actual expenditures for the first three months. Has the Machining Department performed better than originally thought