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)		100
Revenue ($365.00q)	$	36,500
Expenses:
Wages and salaries ($8,000 + $125.00q)		20,500
Supplies ($3.00q)		300
Equipment rental ($1,800 + $32.00q)		5,000
Insurance ($3,400)		3,400
Miscellaneous ($630 + $1.80q)		810
Total expense		30,010
Net operating income	$	6,490

During May, the company’s actual activity was 105 diving-hours.

Required:

Prepare a flexible budget for May.

Answer 1

Flexible Budget of Puget Sound Diners for May. Particulars | Amount (4) Revenue (4365 X 105) CA) 38,325 Ley Expenses Wages and Salaries 21,125 °C8000 +1125 x 105) 780ct 13129 Supplies (3x105) 315 Equipment seental (1800+32x105) 5160 Insurance 3400 Miscellaneous (630+(1.80 x 105) 819 Total expenses (B) 30,819 Net operating income $7,506 Given that or during may the company's actual activity was q=105 diving-hours. come