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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The company's planning budget for May
appears below:
Budgeted diving-hours (q)
Revenue ($390.00q)
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Expenses:
Wages and salaries ($12,000+ $130.00g)
Revenue
Expenses:
Supplies ($4.00q)
Equipment rental ($2,200 + $25.00g)
Insurance ($4,000)
Miscellaneous ($520+ $1.48q)
Total expenses
Net operating income
During May, the company's actual activity was 340 diving-hours.
Required:
Prepare a flexible budget for May.
Note: Round your answers to the nearest whole number.
Miscellaneous
Total expenses
Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Wages and salaries
Supplies
Equipment rental
Insurance
350
$ 136,500
57,500
1,400
10,950
4,000
1,038
74,888
$ 61,612
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- Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($460.00q) Expenses: Wages and salaries ($11,200 +$126.00q) Supplies ($5.00q) Equipment rental ($2,400 + $20.00q) Insurance ($4,000) Miscellaneous ($540 + $1.50q) Total expenses Net operating income. 250 $ 115,000 42,700 1,250 7,400 4,000 915 56,265 $ 58,735 During May, the company's actual activity was 240 diving-hours. Required: Prepare a flexible budget for May. Note: Round your answers to the nearest whole number.arrow_forwardPuget 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: Budgeted diving-hours (9) Revenue ($450.009) Expenses: Wages and salaries ($11,700 + $122.009) Supplies ($5.009) Equipment rental ($2,400 + $24.009) Insurance ($3,800) Puget Sound Divers Planning Budget For the Month Ended May 31 Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Miscellaneous ($540+ $1.469) Total expense Net operating income During May, the company's actual activity was 390 diving-hours. Wages and salaries Supplies Equipment rental Insurance. Miscellaneous Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Total expense Net operating income. 400 $ 180,000 $ 60,500 2,000 12,000 0 0 3,800 1,124 79,424 $ 100,576arrow_forwardVinubhaiarrow_forward
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