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 (q)		200
Revenue ($420.00q)	$	84,000
Expenses:
Wages and salaries ($11,900 + $130.00q)		37,900
Supplies ($5.00q)		1,000
Equipment rental ($2,300 + $26.00q)		7,500
Insurance ($4,100)		4,100
Miscellaneous ($530 + $1.46q)		822
Total expense		51,322
Net operating income	$	32,678

During May, the company’s actual activity was 190 diving-hours.

Required:

Prepare a flexible budget for May. (Round your answers to the nearest whole number.)

Answer 1

Answero Total Tevenue - 480 x actual diving hours obl xoens oogbt $ = é revenue-420 ) vagy and salaris = 11,900 +1301009 = 11,900 +130 x 190) = 11900 +24700 = $36600 supplies = 190x. 5 . = 950 Equipment - $2,300 + (190 hus x 26) = 2,300 +11940 = $7240 insurance = $4,200 miscellaneous = ($530 +(190x 1,461) = 530 + 27114 = 807

Amount | Amount 190 hours $7.9800 Prepare the flexible bechget i Particulars Actual diving-hours Total revenue -Less: Expense -Luages and salaries - Supplies உடிபடியா insurance $36600 $9.50 - $1840 $4,00 $807 Miscellancou $ 496 97 Tolal Expense Het operating income $30103 The calculated net operating income = $30103)