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) 400 $188,000 Revenue (3470.009) Expenses: Wages and salaries ($11, 900 + $130.00g) Supplies ($5.00g) Equipment rental ($2,300 + $24.009) Insurance ($4,100) Miscellaneous (9510+ $1.489) Total expense Net operating income 63,900 2,000 11, 900 4,100 1,102 83,002 $104,998 During May, the company's actual activity was 390 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

FLEXIBLE BUDGET FOR 390 DIVING - HOURS
Particulars		Amount
Sales Revenue (390 x $ 470)		$                1,83,300
Less: Expenses
Wages and Salaries		$                   62,600
Fixed	11900
Variable (390 X 130)	50700
Supplies (390 X $ 5)		$                      1,950
Equipment Rental		$                   11,660
Fixed	2300
Variable (390 X $ 24)	9360
Insurance		$                      4,100
Miscllaneous		$                      1,087
Fixed	510
Variable (390 X $ 1.48)	577
Total Expenses		$                   81,397
Ner Operating income		$                1,01,903