During May, the company's actual activity was 240 diving-hours. Required: Prepare a flexible budget for May. Note: Round your answers to the nearest whole number. Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Puget Sound Divers Flexible Budget For the Month Ended May 31 Total expenses
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.
![Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1]
Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The company's planning budget for May
appears below:
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Budgeted diving-hours (g)
Revenue ($460.00g)
Expenses:
Wages and salaries ($11,200 + $128.00q)
Supplies ($4.00q)
Equipment rental ($2,400 + $22.00q)
Insurance ($3,900)
Miscellaneous ($500 + $1.44q)
Total expenses
Net operating income
250
$ 115,000
43,200
1,000
7,900
3,900
860
56,860
$ 58,140
During May, the company's actual activity was 240 diving-hours.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6069db0-f496-4c11-99c9-1e809a876661%2F2c7f0f49-ff3f-4921-9437-da469f90b27e%2Fqfbqs69_processed.jpeg&w=3840&q=75)
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