Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) 400 Revenue ($400.00q) Expenses: wages and salaries ($11,200 +$126.009) Supplies ($6.009) Equipment rental ($2,500+ $21.009) Insurance ($4,000) Miscellaneous ($520 + $1.50q) Total expense Net operating income $ 160,000 61,600 2,400 10,900 4,000 1,120 80,020 $ 79,980 During May, the company's actual activity was 390 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) 400 Revenue ($400.00q) Expenses: wages and salaries ($11,200 +$126.009) Supplies ($6.009) Equipment rental ($2,500+ $21.009) Insurance ($4,000) Miscellaneous ($520 + $1.50q) Total expense Net operating income $ 160,000 61,600 2,400 10,900 4,000 1,120 80,020 $ 79,980 During May, the company's actual activity was 390 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area.
The company's planning budget for May appears below:
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Budgeted diving-hours (9)
400
$ 160,000
Revenue ($400.009)
Expenses:
wages and salaries ($11,200 +$126.009)
Supplies ($6.009)
Equipment rental ($2,500+ $21.009)
Insurance ($4,000)
Miscellaneous ($520 + $1.50q)
Total expense
Net operating income
61,600
2,400
10,900
4,000
1,120
80,020
$ 79,980
During May, the company's actual activity was 390 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
Revenue
Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense
Net operating income
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