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 240 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) 250 Revenue ($410.00q) $ 102,500 Expenses: Wages and salaries ($12,000 + $126.00q) 43,500 Supplies ($5.00q) 1,250 Equipment rental ($2,400 + $23.00q) 8,150 Insurance ($4,200) 4,200 Miscellaneous ($520 + $1.46q) 885 Total expense 57,985 Net operating income $ 44,515

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Budgeted - 250 Hours Flexible Budget - 240hours Revenue ($410.00q)                   102,500.00              98,400.00 Expenses: Wages and salaries ($12,000 + $126.00q)                     43,500.00              42,240.00 Supplies ($5.00q)                       1,250.00                1,200.00 Equipment rental ($2,400 + $23.00q)                       8,150.00                7,920.00 Insurance ($4,200)                       4,200.00                4,200.00 Miscellaneous ($520 + $1.46q)                           885.00                          870 Total expense                     57,985.00                    56,430 Net operating income                     44,515.00                    41,970

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