Exercise 8-1 Prepare a Flexible Budget [LO8-1] Puget Sound Divers is a company t

Question

Exercise 8-1 Prepare a Flexible Budget [LO8-1]

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

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

During May, the company’s activity was actually 240 diving-hours. Complete the following flexible budget for that level of activity

Budgeted driving hour 240 driving hour sales revenue 108000 Expenses : Wages and salaries 41920 Supplies 1200 Equipment rental 8300 Insurance 3900 Miscellaneous 876 Total expense 56196 Net operating income 51804

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