Puget Sound Divers is a company that provides diving services such as underwater ship repairs...
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Accounting
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companys planning budget for May appears below:
Puget Sound Divers Planning Budget For the Month Ended May 31
Budgeted diving-hours (q)
400
Revenue ($470.00q)
$
188,000
Expenses:
Wages and salaries ($11,400 + $128.00q)
62,600
Supplies ($5.00q)
2,000
Equipment rental ($2,200 + $24.00q)
11,800
Insurance ($4,000)
4,000
Miscellaneous ($530 + $1.44q)
1,106
Total expense
81,506
Net operating income
$
106,494
During May, the companys actual activity was 390 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Revenue
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense
0
Net operating income
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