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 290 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) 300 Revenue ($470.00q) $ 141,000 Expenses: Wages and salaries ($12,000 + $124.00q) 49,200 Supplies ($5.00q) 1,500 Equipment rental ($2,000 + $23.00q) 8,900 Insurance ($4,100) 4,100 Miscellaneous ($510 + $1.48q) 954 Total expense 64,654 Net operating income $ 76,346

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Flexible Budget Paticulars 290 Diving hours Revenue = 470 * 290                136,300.00 Expenses :   Wages and salaries = 12000 + 124*290                  47,960.00 Supplies = 5 *290                     1,450.00 Equipment rental =2000 + 23.00 * 290                     8,670.00 Insurance                     4,100.00 Miscellaneous = 510 + 1.48*290                        939.20 Total Expense                  63,119.20 Net operating income = 136,300 - 63,119.20                  73,180.80

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