Question

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 $156,000 Revenue ($390.00) Expenses: Wages and salaries ($11,100 + $128.00) Supplies ($4.00) Equipment rental ($2,300 + $24.009) Insurance ($4,200) Miscellaneous ($530 + $1.469) Total expense Net operating income 62,300 1,600 11,900 4,200 1,114 81, 114 $ 74,886 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 Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income

Answer 1

1
Actual diving-hours	390
Revenue	152100	=390*390
Expenses:
Wages and salaries	61020	=11100+(390*128)
Supplies	1560	=390*4
Equipment Rental	11660	=2300+(390*24)
Insurance	4200
Miscellaneous	1099	=530+(390*1.46)
Total expense	79539
Net Operating income	72561

2

	Flexible budget
Actual Cars washed	8500
Revenue	51000	=8500*6
Expenses:
Cleaning supplies	6800	=8500*0.80
Electricity	2165	=1400+(8500*0.09)
Maintenance	2125	=8500*0.25
Wages and salaries	6700	=5000+(8500*0.20)
Depreciation	8000
Rent	1900
Administrative expenses	2125	=1700+(8500*0.05)
Total expenses	29815
Net operating income	21185