Question

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients 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 Budgeted diving-hours (g) 300 $117,000 Revenue ($390.000) Escpenses: Wages and salaries ($11, 400 + $124.00) Supplies ($4.00) Equipment rental ($2,500 + $22.00) Insurance ($4,100) Miscellaneous ($530 + $1.48g) Total expense Net operating income 48, 600 1,200 9, 100 4,100 919 63,974 $ 53,026 During May, the company's actual activity was 290 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

Answer 1

Flexible Budget
For the Month Ended May 31
Actual diving-hours	290
Revenue	113100	=290*390
Expenses:
Wages and salaries	47360	=11400+(290*124)
Supplies	1160	=290*4
Equipment Rental	8880	=2500+(290*22)
Insurance	4100
Miscellaneous	959	=530+(290*1.48)
Total expenses	62459
Net Operating Income	50641