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 activity was actually 340 diving-hours. Complete the following flexible budget for that level of activity. (Round your answers to nearest whole dollar.)

Puget Sound Divers

Flexible Budget

For the Month Ended May 31

Revenue

Expenses:

Wages and salaries

Supplies

Equipment rental

Insurance

Miscellaneous

Total expense

0

Net operating income

$0

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:

Explanation / Answer

Puget Sound Divers Flexible Budget For the Month Ended May 31 Statement showing computations Particulars Amount Revenues = 340 * 470      159,800.00 Expenses: Wages and Salaries = 12,000 + 340 * 122        53,480.00 Supplies = 340 *5          1,700.00 Equipment Rental = 2400 + 340 * 21          9,540.00 Insurance          3,900.00 Miscellaneous Expense = 550 + 340 * 1.50          1,060.00 Total Expense          69,680.00 Net operating income        90,120.00

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