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)		250
Revenue ($430.00q)	$	107,500
Expenses:
Wages and salaries ($11,600 + $124.00q)		42,600
Supplies ($4.00q)		1,000
Equipment rental ($2,300 + $25.00q)		8,550
Insurance ($4,000)		4,000
Miscellaneous ($510 + $1.42q)		865
Total expense		57,015
Net operating income	$	50,485

During May, the company’s actual activity was 240 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
Actual diving-hours
Revenue
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense	0
Net operating income

Answer 1