Question

Exercise 9-1 (Algo) Prepare a Flexible Budget (LO9-1] 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) 4ee $180, eee Revenue ($450.089) Expenses: Wages and salaries ($11, eee + $126.089) Supplies ($4.289) Equipment rental ($2,400 + $25.00) Insurance ($3,880) Miscellaneous ($528 + $1.449) Total expense Net operating income 61, 4ee 1,60e 12,400 3,8ee 1,096 89, 296 $ 99,704 During May, the company's actual activity was 390 diving hours.

Answer 1

Puget Sound Divers Flexible Budget For the Month ended May 31 Actuval driving hours 390 $ 175,500 Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellenious Total Expenses Net Operating Income $ $ $ $ $ $ $ 60,140 1,560 12,150 3,800 1,082 78,732 96,768 working Notes : Revenue =390*$450.0 = $175,500 Wages and salaries = $11,000+(390*$126) = $60,140 Supplies = 390*$4.00 = $1,560 Equipment Rental = $2,400 +(390*$25) = $12,150 Miscellenious = $520+ (390*$1.44) = $1,082