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 (9) 250 $12.500 Revenue ($410.689) Expenses: Wages and salaries ($11,900 + $126.684) Supplies ($5.00) Equipment rental ($2,208 + $25.889) Insurance ($4,100) Miscellaneous ($530 + $1.424) Total expense Net operating income 43.499 1.250 8,450 4.189 885 58.85 $ 44, 415 During May, the company's actual activity was 240 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

Answer:- Puget Sound Divers Flexibele budget for the month Ended May 31 = 240 Actual diving hours $ 98400 (a) Revenue l $410 x 240] Expenses : $ 42,140 wages and salaries ($11900+ (240x $126)] $ 1200 $ 8200 Supplies (240x $5] Equipment rental ($2200+ (240X $2,5)] Insurance Blog miscellaneous ($ 530+(240x $ ,42)] $4100 $871 (6) 6+Speed $56,511 Net operating Income (a-b) $ 41,889