Puget Sound Divers is a company that provides diving services such as underwater

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:

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
Planning Budget
For the Month Ended May 31 Budgeted diving-hours (q) 200 Revenue ($460.00q) $ 92,000 Expenses: Wages and salaries ($11,300 + $126.00q) 36,500 Supplies ($4.00q) 800 Equipment rental ($2,100 + $25.00q) 7,100 Insurance ($3,900) 3,900 Miscellaneous ($550 + $1.46q) 842 Total expense 49,142 Net operating income $ 42,858 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

Explanation / Answer

Puget Sound Divers Flexible Budget For the Month Ended May 31 Budgeted diving-hours (q) 190 Revenue (460*190) 87,400 Expenses: Wages and salaries (11300+(126*190)) 35,240 Supplies (4*190) 760 Equipment rental (2100+(25*190)) 6,850 Insurance 3,900 Miscellaneous (550+(1.46*190)) 827 Total expense 47,577 Net operating income 39,823

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