Gator Divers is a company that provides diving services such as underwater ship
ID: 2452979 • Letter: G
Question
Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the Tampa Bay area. The company’s planning budget for March appears below:
Gator Divers
Planning Budget
For the Month Ended March 31
Budgeted diving-hours (q)
300
Revenue ($420.00q)
$
126,000
Expenses:
Wages and salaries ($11,900 + $124.00q)
49,100
Supplies ($4.00q)
1,200
Equipment rental ($2,300 + $20.00q)
8,300
Insurance ($3,900)
3,900
Miscellaneous ($530 + $1.44q)
962
Total expense
63,462
Net operating income
$
62,538
Required:
During March, the company’s activity was actually 290 diving-hours. Complete the flexible budget for that level of activity. (Round your answers to nearest whole dollar.)
Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the Tampa Bay area. The company’s planning budget for March appears below:
Explanation / Answer
Gator Divers
Flexible Budget
For the Month Ended March 31
diving-hours (q)
290
Revenue ($420.00q)
$
121,800
Expenses:
Wages and salaries ($11,900 + $124.00q)
47,860
Supplies ($4.00q)
1,160
Equipment rental ($2,300 + $20.00q)
8,100
Insurance ($3,900)
3,900
Miscellaneous ($530 + $1.44q)
948
Total expense
61,968
Net operating income
$
59,832
Gator Divers
Flexible Budget
For the Month Ended March 31
diving-hours (q)
290
Revenue ($420.00q)
$
121,800
Expenses:
Wages and salaries ($11,900 + $124.00q)
47,860
Supplies ($4.00q)
1,160
Equipment rental ($2,300 + $20.00q)
8,100
Insurance ($3,900)
3,900
Miscellaneous ($530 + $1.44q)
948
Total expense
61,968
Net operating income
$
59,832
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