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 (9) 350 $143,500 Revenue ($410.00) Expenses : Wages and salaries ($11,200 + $126.009) Supplies ($5.00) Equipment rental ($2,200 + $22.00) Insurance ($4,200) Miscellaneous ($500 + $1.469) Total expense Net operating income 55,300 1,750 9,900 4,200 1,011 72,161 $ 71,339 During May, the company's actual activity was 340 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.)

Answer 1

Answer

• Flexible Budget, with working

		WORKING COLUMNS					Flexible Budget
Driving hours							340
Revenues				$ 410.00			$ 139,400.00
Expenses:
Wages & Salaries	(	$      11,200.00	)	$ 126.00	x 340		$    54,040.00
Supplies	(	$                      -	)	$      5.00	x 340	)	$      1,700.00
Equipment rental	(	$         2,200.00	+	$    22.00	x 340	)	$      9,680.00
Insurance	(	$         4,200.00	+	$           -	x 340	)	$      4,200.00
Miscellaneous	(	$            500.00	+	$      1.46	x 340		$          996.40
Total Expenses		$      18,100.00		$ 154.46			$    70,616
Net Operating Income							$ 68,784