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)		200
Revenue ($410.00q)	$	82,000
Expenses:
Wages and salaries ($11,900 + $120.00q)		35,900
Supplies ($3.00q)		600
Equipment rental ($2,000 + $21.00q)		6,200
Insurance ($3,800)		3,800
Miscellaneous ($510 + $1.46q)		802
Total expense		47,302
Net operating income	$	34,698

During May, the company’s actual activity was 190 diving-hours.

Required:

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

Sound Divers Puget Flexible Budget for the month Ended may 31 190 Actual diving-hours $ 787 Revenue & 97,900 Expenses? Wages and salaries & 34,700 Supplies $ 570 Equipment rental $ 5,990 Insurance $ 3,800 Miscellaneous Total expense $ 45, 847 Net operating income & 32, 053 Calculations Revenue = ($ 410 x 190) $ 77,900 wages and salaries. $ 11,900 7 (4120 X 190) & 34,700 Supplies ($3 x 190) = & 570 Equipment rental $ 2,000 +($21X190) $ 5,990 Miscellaneous 4 510 + ($1.46 X190) $ 787 2