Question

For the Month Ended May 31 Budgeted diving-hours (9) 100 $36,500 20,500 300 Revenue ($365.00) Expenses : Wages and salaries ($8,000 + $125.00) Supplies ($3.00g) Equipment rental ($1,800 + $32.009) Insurance ($3,400) Miscellaneous ($630 + $1.809) Total expense Net operating income 5,000 3,400 810 30,010 $ 6,490 During May, the company's actual activity was 105 diving-hours. Required: Prepare a flexible budget for May. 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 $ 0

Answer 1

Answer -

Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Actual diving-hours	105
Revenue	$38325
Expenses:
Wages and salaries	$21125
Supplies	$315
Equipment rental	$5160
Insurance	$3400
Miscellaneous	$819
Total expense	$30819
Net operating income	$7506

Calculation:

Revenue = 105 hours * $365 = $38325

Wages and salaries = $8000 + (105 hours * $125) = $21125

Supplies = 105 hours * $3 = $315

Equipment rental = $1800 + (105 hours * $32) = $5160

Miscellaneous = $630 + (105 hours * $1.80) = $819