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: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) 200 Revenue ($440.00q) Expenses: S 88,000 Wages and salaries ($11,300 $126.00q) Supplies ($3.00q) Equipment rental ($2,400 $24.00q) Insurance (S4,100) Miscellaneous ($550 $1.464) 36,500 600 7,200 4,100 842 49,242 $ 38,758 Total expense Net operating income 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 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

Flexible Budget for May for actual 190 diving hours:

Revenue                         83600    (440*190)
Expenses:
   Wages & Salaries                      35240    (11300 + 126*190)
   Supplies                                     570     (3*190)
   Equipment Rental                       6960     (2400 + 24*190)
   Insurance                                   4100
   Miscellaneous                            827.4    (550 + 1.46*190)
Total Expense                             47697.4
Net Operating Income              35902.6

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.