2) Prepare a Flexible Budget 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 static budget for May appears below: Puget Sound Divers Static Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($365.00g) Expenses: Wages and salaries ($8,000+ $125.00q) Supplies ($3.00q) Equipment rental ($1,800+ $32.00q) Insurance ($3,400) Miscellaneous ($630 + $1.80q) Total expense Net operating income 100 $36,500 20,500 300 5,000 3,400 810 30,010 $ 6,490 During May, the company's actual activity was 105 diving-hours. Required: Prepare a flexible budget for May.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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