1. State Buduet versus I hexibile Budget. The peodoction supervisor of the Machining Denertment
for Nised compary ageed to the follewing monthly static budget for the upeaming year:
a. Trepare a flewble bodoet for the actual units produced for Jansary, February, and March in the
Machining Department: Assume depreciation is a fixed cost. If required, use. Der unit atnounts
carned out to two decimal places:
b. Compare the flexible budget with the actual expenditures for the first three months. The
Machining Department has performed better than originally thought. The department is spending
more than would be expected.