EX 7-3 Static budget versus flexible budget Obj. 2, 4 B. Excess of actual The production supervisor of the Machining Department for Niland Company agreed to the cost over budget for following monthly static budget for the upcoming year: March, $45,750 Niland Company Monthly Production Budget Wages.. Utlities. Depreciation.. 1,125,000 90,000 50,000 HOW MEHW EXCEL TEMPLATE The actual amount spent and the actual units produced in the first three months in the Machin ing Department were as follows Amount Spent $1,100,000 1,200,000 1,250,000 Units Produced January 0,000 95,000 March 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 Continued)