gnment/take Assignment Main.do?inprogress=true eBook Show Me How Print Item Static Budget versus Flexible Budget The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year: Niland Company Machining Department Monthly Production Budget Wages $366,000 Utilities 15,000 Depreciation 25,000 Total $406,000 The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced January $382.000 61,000 February 366,000 56,000 March 345.000 50,000 The Machining Department supervisor has been very pleased with this performance because actual expenditures for January March have been less than the monthly static budget of $400.000. However, the plant manager believes that the budget should not remained for every month but should lex or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Dabartment is as follows Check My Work /ilm/takeAssignment/take AssignmentMain.do?inprogress=true Wages per hour Utility cost per direct labor hour $22.00 $0.90 Direct labor hours per unit 0.25 Planned monthly unit production 67,000 a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume that depreciation is a fixed cost. Enter all amounts as positive numbers. If required, use per unit amounts carried out to two decimal places. Niland Company-Machining Department Flexible Production Budget For the Three Months Ending March 31 January February March Units of production Wages Utilities Depreciation Total FK Check My Wor For each level of production show wages, utilities, and depreciation Check My Work All work saved takeAssignment Main.do?inprogress=true Consider performance and spending b. Compare the flexible budget with the actual expenditures for the first three months. January Total flexible budget February March Actual cost Excess of actual cost over budget What does this comparison suggest? The Machining Department has performed better than originally thought. The department is spending more than would be expected. No Yes Feedback Check My Work For each level of production, show wages, utilities, and deprecation, Consider performance and spending Feeds Check My Work All work saved