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) 350 $164,500 Revenue ($470.00q) Expenses: Wages and salaries ($11,900 + $120.00) Supplies ($3.00g) Equipment rental ($2,200 + $22.009) Insurance ($4,100) Miscellaneous ($510 + $1.489) Total expense 53,900 1,050 9,900 4,100 1,028 69,978 $ 94,522 Net operating income During May, the company's actual activity was 340 diving-hours.

Answer 1

Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Revenue ($470x340)	$            159,800
Expenses
Wages and Salary ($11,900+$120x340)	$              52,700
Supplies ($3x340)	$                 1,020
Equipment Rental ($2,200+$22x340)	$                 9,680
Insurance($4,100)	$                 4,100
Miscellaneous ($510+$1.48x340)	$                 1,013
Total expenses	$              68,513
Net operating Income	$              91,287