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 (a) 300 $ 114,000 Revenue ($380.009) Expenses: Wages and salaries ($11,200 + $122.009) Supplies ($6.009) Equipment rental ($2,400 + $21.009) Insurance ($3,900) Miscellaneous ($510 + $1.429) Total expense Net operating income 47,800 1,800 8,700 3,900 936 63,136 $ 50,864 During May, the company's actual activity was 290 diving-hours.

Answer 1

Puget Sound Divers Flexible Budget For the Month Ended May 31 Actual diving-hours 290 $ 110,200 $ Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total Expense Net Operating Income 46,580 1,740 8,490 3,900 922 61,632 48.568 S S Working Notes: Revenue = 290*$380 = $110,200 Wages Salaries = $11,200 +(290*$122) = $11,200+$35,380 = 446,580 Supplies = 290*S6 = $1,740 Equipment rental = $2,400 +(290*521) = $2,400+$6.090 = $8.490 Miscellenious = $510 +(290*$1.42) = $510+S412 = $922