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) 350 Revenue ($450.00q) $ 157,500 Expenses: Wages and salaries ($11,400 + $126.00q) 55,500 Supplies ($6.00q) 2,100 Equipment rental ($2,100 + $21.00q) 9,450 Insurance ($4,100) 4,100 Miscellaneous ($520 + $1.42q) 1,017 Total expense 72,167 Net operating income $ 85,333 During May, the company’s actual activity was 340 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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) | 350 | |
| Revenue ($450.00q) | $ | 157,500 |
| Expenses: | ||
| Wages and salaries ($11,400 + $126.00q) | 55,500 | |
| Supplies ($6.00q) | 2,100 | |
| Equipment rental ($2,100 + $21.00q) | 9,450 | |
| Insurance ($4,100) | 4,100 | |
| Miscellaneous ($520 + $1.42q) | 1,017 | |
| Total expense | 72,167 | |
| Net operating income | $ | 85,333 |
During May, the company’s actual activity was 340 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
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