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) Revenue ($450.00g) Expenses: Wages and salaries ($11,100+ $126.00q) Supplies ($6.00q) Equipment rental ($2,300+ $20.00q) Insurance ($4,100) Miscellaneous ($500+ $1.48q) Total expense 200 $90,000 36,300 1,200 6,300 4,100 796 48,696 Net operating income $41,304 Required: During May, the company's activity was actually 190 diving-hours. Complete the following flexible budget for that level of activity. (Round your final answer to nearest dollar amount.) 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 12

Answer 1

	Puget Sound Drivers
	Flexible Budget for the month ended May31
Revenue ($450*190)	85,500
Expenses:
Wages and salaries ($11,100 + 128*190)	35,420
Supplies (6*190)	1,140
Equipment Rental ($2,300 + $20*190)	6,100
Insurance ($4,100)	4,100
Miscellaneous ($500 + 1.48*190)	781
Total Expense	47,541
Net Operating Income	$37,959