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 105 diving-hours Puget Sound Divers Planning Budget For the Month Ended May 31 Required Prepare a flexible budget for May. Budgeted diving-hours (q) 100 S 36, 500 Revenue ($365.00g) Expenses: Wages and salaries ($8,000$125.00q) Supplies ($3.00q) Equipment rental ($1,800 $32.00g) Insurance ($3,400) Miscellaneous ($630 $1.80q) 20,500 300 5,000 3,400 810 30,010 $ 6,490 Puget Sound Divers Flexible Budget For the Month Ended May 31 Total expense Net operating income Revenue Expenses During May, the company's actual activity was 105 diving-hours Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income

Explanation / Answer

Answer

For 105 driving hours

Working

Amount in $

Revenue

[365 x 105]

38325

Expenses:

Wages and salaries

[8000 + (125 x 105)]

21125

Supplies

[3 x 105]

315

Equipment rental

[1800 + (32 x 105)]

5160

Insurance

3400

Miscellaneous

[630 + (1.8 x 105)]

819

Total Expenses

30819

Net operating Income

[38325 – 30819]

7506

For 105 driving hours

Working

Amount in $

Revenue

[365 x 105]

38325

Expenses:

Wages and salaries

[8000 + (125 x 105)]

21125

Supplies

[3 x 105]

315

Equipment rental

[1800 + (32 x 105)]

5160

Insurance

3400

Miscellaneous

[630 + (1.8 x 105)]

819

Total Expenses

30819

Net operating Income

[38325 – 30819]

7506

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