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)		300
Revenue ($420.00q)	$	126,000
Expenses:
Wages and salaries ($11,400 + $122.00q)		48,000
Supplies ($6.00q)		1,800
Equipment rental ($2,100 + $24.00q)		9,300
Insurance ($4,100)		4,100
Miscellaneous ($540 + $1.48q)		984
Total expense		64,184
Net operating income	$	61,816

During May, the company’s actual activity was 290 diving-hours.

Required:

Prepare a flexible budget for May. (Round your answers to the nearest whole number.)

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

Puget Sound Divers Flexible Budget For the Month Ended May 31 Actual diving - hours 2901 121800 Revenue: Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expenses Net operating income 467801 17401 90601 4100 969 62649 59151