Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 9, Problem 1E
Prepare a Flexible Budget
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:
During May, the company’s actual activity was 105 diving-hours.
Required:
Using Exhibit 9−5 as your guide, prepare a flexible budget for May.
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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 ($400.00g)
Expenses:
Wages and salaries ($11,100+ $124.00g)
Supplies ($4.00g)
Equipment rental ($2,300+ $24.00g)
Insurance ($3,800)
Miscellaneous ($500+ $1.48q)
Total expenses
Net operating income
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.
250
$ 100,000
42,100
1,000
8,300
3,800
870
56,070
$ 43,930
Chapter 9 Solutions
Introduction To Managerial Accounting
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