Question

Ceng Rare Trans Chapter 9 Assignment Seved 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: points Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (9) eBook 300 $117,000 Revenue ($390.000) Expenses: Wages and salaries ($11, 100+ $122.000) Supplies ($6.000) Equipment rental ($2,500 + $24.009) Insurance ($3,900) Miscellaneous ($510 + $1.509) Total expense Net operating income 47,700 1,800 9.700 3.900 960 64,060 $ 52.940 During May, the company's actual activity was 290 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 < Prex 4 of 5 !!! Next >

Answer 1

	FLEXIBLE BUDGET FOR THE MONTH OF MAY FOR 290 DRIVING HOURS
		AMOUNT	AMOUNT
	Actual Driving Hours		290
	Revenue ( $ 390 X 290) (A)		$                  1,13,100
	Expenses:
	Wages and Salaries		$                      46,480
	Fixed	$                         11,100
	Variable ($ 122 X 290)	$                         35,380
	Supplies ($ 6.00 X 290)		$                        1,740
	Equipment		$                        9,460
	Fixed	$                            2,500
	Variable ($ 24 X 290)	$                            6,960
	Insurance		$                        3,900
	Miscllaneous Expenses
	Fixed	$                               510	$                            945
	Variable ($ 1.50 X 290)	$                               435
	Total Expenses (B)		$                      62,525
	Net operating Income ( A -B)		$                      50,575