eBook Show Me How Question Content Area Static budget versus flexible budget The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: Hagerstown Company Machining Department Monthly Production Budget Line Item Description Amount Wages $196,000 Utilities 12,000 Depreciation 19,000 Total $227,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Month Amount Spent Units Produced May $214,000 60,000 June 202,000 54,000 July 194,000 49,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for May-July have been significantly less than the monthly static budget of 227,000. 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: Line Item Description Amount Wages per hour $15.00 Utility cost per direct labor hour $0.90 Direct labor hours per unit 0.20 Planned monthly unit production 65,000 Question Content Area a. Prepare a flexible budget for the actual units produced for May, June, and July