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 290 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) 300 Revenue ($410.00q) $ 123,000 Expenses: Wages and salaries ($11,200 + $122.00q) 47,800 Supplies ($5.00q) 1,500 Equipment rental ($2,500 + $23.00q) 9,400 Insurance ($3,800) 3,800 Miscellaneous ($550 + $1.42q) 976 Total expense 63,476 Net operating income $ 59,524

Explanation / Answer

puget sound drives planning budget for the year ended March 31 actual diving hours $290 A) Revenue (410*$290) $118,900 Expenses Wages and salaries ($11,200+(122*$290)) $46,580 Supplies ($5*$290) $1,450 Equipmental rental (2500+($23*$290)) $6,670 Insurance   $3,800 miscellaneous ($550+($1.42*$290)) $962 B) Total expenses $59,462 Net operating Income (A-B) $59,438

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