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 ($420.00q)
$ 147,000
Expenses:
Wages and salaries ($11,100 + $122.00q)
53,800
Supplies ($4.00q)
1,400
Equipment rental ($2,200 + $26.00q)
11,300
Insurance ($3,900)
3,900
Miscellaneous ($510 + $1.48q)
1,028
Total expense
71,428
Net operating income
$ 75,572
During May, the companys 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
Revenue
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense
Net operating income
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