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) 300 Revenue ($480.00q) $ 144,000 Expenses: Wages and salaries ($11,700 + $126.00q) 49,500 Supplies ($5.00q) 1,500 Equipment rental ($2,000 + $22.00q) 8,600 Insurance ($3,900) 3,900 Miscellaneous ($520 + $1.48q) 964 Total expense 64,464 Net operating income $ 79,536 During May, the company’s actual activity was 290 diving-hours.

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 (g) 300 Revenue ($480.00g) Expenses: $144,000 salaries(s11,700 $126.00g) Wages and Supplies ($5.00g) Equipment rental ($2,000 $22.00g) Insurance ($3,900) Miscellaneous ($520 + $1.48g) 49,500 1,500 8,600 3,900 964 64,464 $79,536 Total expense Net operating income During May, the company's actual activity was 290 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.)

Explanation / Answer

Flexible Budget Actual diving hours 290 Revenue 139200 139200 Expenses: Wages and salaries 48240 =11700+(290*126) Supplies 1450 =290*5 Equipment rental 8380 =2000+(290*22) Insurance 3900 Miscellaneous 949 =520+(290*1.48) Total expense 62919 Net operating income 76281

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