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:

Required:

During May, the company’s activity was actually 340 diving-hours. Complete the following flexible budget for that level of activity. (Round your final answer to nearest dollar amount.)

Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($390.00q) Expenses: 350 $136,500 Wages and salaries ($11,900 $126.00q) Supplies ($4.00q) Equipment rental ($2,100 $25.00q) Insurance ($4,200) Miscellaneous ($540+ $1.46q) 56,000 1,400 10,850 4,200 1,051 73,501 Total expense Net operating income 62,999

Explanation / Answer

flexible budget Revenue 132600 Expenses: Wages and salaries 54740 Supplies 1360 Equipment rental 10600 insurance 4200 Miscellaneous 1036 total expense 71936 Net operating income 60664

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