Question

Exercise 9-1 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 (q) 250 $102,500 Revenue $410.00g) Expenses: Wages and salaries ($11,300 $124.00g) Supplies $5.00g) Equipment rental ($2,000 + $22.00g) Insurance ($3,900) Miscellaneous ($510 $1.44q) Total expense 42,300 1,250 7,500 3,900 870 55,820 $ 46,680 Net operating income During May, the company's actual activity was 240 diving-hours.

Answer 1

Flexable Budget For the month of May 31 Particulars Driving hours Amount 240 $ 98,400 Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellaneus Total expenses Net operating income $ 41,060 $ 1,200 $ 7,280 $ 3,900 $ 856 $ 54,296 $ 44,104