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Puget Sound Divers is a company that provides diving services such as underwater ship repairs to...

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) 350
Revenue ($430.00q) $ 150,500
Expenses:
Wages and salaries ($11,800 + $122.00q) 54,500
Supplies ($5.00q) 1,750
Equipment rental ($2,300 + $23.00q) 10,350
Insurance ($3,900) 3,900
Miscellaneous ($540 + $1.48q) 1,058
Total expense 71,558
Net operating income $ 78,942

During May, the company’s actual activity was 340 diving-hours.

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Answer-

Puget Sound drivers
Flexible Budget
For the month of Ended May 31
Particulars Amount
$
Revenue (a) 340 diving hours*$430 per hour 146200
Expenses:-
Wages & Salaries (340 diving hours*$122 per hour)+$11800 53280
Supplies 340 diving hours*$5 per hour 1700
Equipment rental (340 diving hours*$23 per hour)+2300 10120
Insurance 3900
Miscellaneous (340 diving hours*$1.48 per hour)+540 1043
Total expenses (b) 70043
Net Operating income (c=a-b) 76157
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