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)
300
Revenue ($410.00q)
$
123,000
Expenses:
Wages and salaries ($11,900 + $124.00q)
49,100
Supplies ($6.00q)
1,800
Equipment rental ($2,200 + $20.00q)
8,200
Insurance ($4,100)
4,100
Miscellaneous ($510 + $1.46q)
948
Total expense
64,148
Net operating income
$
58,852
During May, the companys actual activity was 290 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
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
$
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