EX $8-3$ Static budget versus flexible budget

Obj. $2,4$

The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year:

$\backslash$table$[[,\backslash$table$[[$Hagerstown Company$],[$Machining Department$],[$Monthly Production Budget$]],],[$Wages$.......,$cdots,$$2,250,000$

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:

$\backslash$table$[[$Wages per hour,$$25\mathrm{.}00$