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 ($450.00q)
$
135,000
Expenses:
Wages and salaries ($11,000 + $122.00q)
47,600
Supplies ($4.00q)
1,200
Equipment rental ($2,100 + $24.00q)
9,300
Insurance ($4,100)
4,100
Miscellaneous ($540 + $1.50q)
990
Total expense
63,190
Net operating income
$
71,810
During May, the companys actual activity was 290 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
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