Puget Sound Divers is a company that provides diving services such as underwater ship repairs...
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Accounting
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companys planning budget for May appears below:
Puget Sound Divers Planning Budget For the Month Ended May 31
Budgeted diving-hours (q)
350
Revenue ($400.00q)
$ 140,000
Expenses:
Wages and salaries ($11,600 + $128.00q)
56,400
Supplies ($5.00q)
1,750
Equipment rental ($2,300 + $24.00q)
10,700
Insurance ($4,100)
4,100
Miscellaneous ($540 + $1.42q)
1,037
Total expense
73,987
Net operating income
$ 66,013
During May, the companys actual activity was 340 diving-hours.
Required:
Prepare a flexible budget for May.
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