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 (9) 300 $120,000 Revenue ($400.009) Expenses: Wages and salaries ($11,300 + $128.009) Supplies ($3.009) Equipment rental ($2,100 + $23.009) Insurance ($3,800) Miscellaneous ($540 + $1.469) Total expense Net operating income 49,700 900 9,000 3,800 978 64,378 $ 55,622 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 dollar.) 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

Answer 1

Amount 290 $ 116,000 Flexable Budget For the month of May 31 Particulars Driving hours Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellaneus Total expenses Net operating income $ 48,420 $ 870 $ 8,770 $ 3,800 $ 963 $ 62,823 $ 53,177 Wages and salaries Supplies Equipment rental Insurance Miscellaneus Fixed cost Variable Total 113003712048420 870) 870 2100 6670 8770 3800 3800 540 423. 4 963