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 $135,000 Revenue ($450.000) Expenses: Wages and salaries ($11,400 + $122.009) Supplies ($6.009) Equipment rental ($2,200 + $24.009) Insurance ($4,000) Miscellaneous ($510 + $1.429) Total expense Net operating income 48,000 1,800 9,400 4,000 936 64,136 $ 70,864 During May, the company's actual activity was 290 diving-hours. Requlred: 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 Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income

Answer 1

Puget Sound Divers Flexible Budget For the Month ended May 31 Actual Diving hours (9) 290 130500 Revenue Expenses: Wages and Salaries Supplies Equipment Rental Insurance Miscellaneous Total Expense Net Operating Income 46780 1740 9160 4000 922 62602 67898 Revenue ($450.00 x 290) = $130,500 Wages and salaries ($11,400 + ($122.00 x 290)) = $46,780 Supplies ($6.00 x 290) = $1,740 Equipment rental ($2,200 + ($24.00 x 290)) = $9,160 Miscellaneous ($510 + ($1.42 x 290)) = $922