Question

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clents in the Puget Sound area The company's planning budget for May appears below Puget Sound Divers Planning Budget For the Month Ended May 31 358 Budgeted diving-haurs (q) $143,508 Revenue ($418,00q) Expenses: Wages and salaries ($11,588 $126.08g Supplies ($5.08g) Equipment rental ($2,800$23.88q) Insurance ($4,280) Miscellaneous ($538 $1.50g) Tetal expense 55,68e 1,75e 18,050 4,280 1,855 72 655 s 70,845 Net operating incoee 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) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revinue Expenses Wages and salaries Supplies Equipment rental inurance Mgcelaneus Tatal axpense Net operaing inoome

Answer 1

Puget Sound Divers Flexible Budget For the Month ended May 31 Actuval driving hours (@ 340 $ 139,400 Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellenious Total Expenses Net Operating Income $ $ $ $ S S S 54,340 1,700 9,820 4,200 1,040 71,100 68,300 working Notes: Revenue = 340*5410.00 = $139,400 Wages and salaries = $11,500+(340*$126) = $54,340 Supplies = 340*$5.00 = $1,700 Equipment Rental = $2,000+(340*$23.00) = $9,820 Miscellenious = $530+(340*$1.50) = $1,040