3.) The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year:Niland CompanyMachining DepartmentMonthly Production BudgetWagesUtilitiesDepreciationTotalJanuaryFebruaryThe actual amount spent and the actual units produced in the first three months in the Machining Department were as follows:Amount Spent Units ProducedMarch$200,000191,000$180,000182,00012,00020,000$212,00055,00050,000Wages per hourUtility cost per direct labor hourDirect labor hours per unitPlanned monthly unit production45,000The Machining Department supervisor has been very pleased with this performance because actual expenditures for January-March have been less than the monthlystatic budget of $212,000. However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume ofwork that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:$15.00$1.000.2060,000a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume that depreciation is a fixed cost. Enterall amounts as positive numbers. If required, use per unit amounts carried out to two decimal places. Niland Company-Machining DepartmentFlexible Production BudgetFor the Three Months Ending March 31Units of productionWagesUtilitiesDepreciationTotalFeedback►Check My Workb. Compare the flexible budget with the actual expenditures for the first three months.FebruaryTotal flexible budgetJanuary February MarchActual costJanuary$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.MarchNoYes

FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…

Niland Company-Machining Department Flexible Production Budget For the Three Months Ending March 31 Units of production Wages Utilities Depreciation Total Feedback ►Check My Work b. Compare the flexible budget with the actual expenditures for the first three months. February Total flexible budget January February March Actual cost January $ $ 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. March No Yes