FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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)   250
     
Revenue ($470.00q) $ 117,500
Expenses:    
Wages and salaries ($11,200 + $124.00q)   42,200
Supplies ($5.00q)   1,250
Equipment rental ($2,400 + $24.00q)   8,400
Insurance ($4,100)   4,100
Miscellaneous ($510 + $1.48q)   880
Total expense   56,830
Net operating income $ 60,670
 

 

During May, the company’s actual activity was 240 diving-hours.

 

Required:

Prepare a flexible budget for May. 

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