please help Static budget versus foxible budget The production...
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Static budget versus foxible budget The production supervisor of the Machining Department for Hagerstown Company agreed to the foliowing monthly static budget for the upcorning year: The actual amounk spent and the actual unts produced in the first three months in the Machining Department were as follows: The Machining Department supervisor has been very pleased with this performance because actual expenditures for May-luly have been significantly less than the monthly static budget of 519,000 . However, the plant manoger 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: a. Prepare a fiexible budget for the actual units produced for May, June, and July in the Machining Department. Assume depreclation is a fixed cost. If required, use per unit amounts carried out to two decimal ploces. b. Compare the fiexible budget with the actual expenditures for the first three months. The Machining Department has performed better than originaly thought: The department is spending more than would be expected
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