Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] 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) Revenue ($450.00g) Expenses: Wages and salaries ($11,800+ $130.00g) Supplies ($6.00g) Equipment rental ($2,000+ $21.00g) Insurance ($4,100) 400 $180,000 63,800 2,400 10,400 4,100 1,132 81,832 $ 98,168 Miscellaneous ($540+ $1.48g) Total expense Net operating income During May, the company's actual activity was 390 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] 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) Revenue ($450.00g) Expenses: Wages and salaries ($11,800+ $130.00g) Supplies ($6.00g) Equipment rental ($2,000+ $21.00g) Insurance ($4,100) 400 $180,000 63,800 2,400 10,400 4,100 1,132 81,832 $ 98,168 Miscellaneous ($540+ $1.48g) Total expense Net operating income During May, the company's actual activity was 390 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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![Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1]
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)
Revenue ($450.00g)
Expenses:
Wages and salaries ($11,800+ $130.00g)
Supplies ($6.00g)
Equipment rental ($2,000+ $21.00g)
Insurance ($4,100)
400
$180,000
63,800
2,400
10,400
4,100
1,132
81,832
$ 98,168
Miscellaneous ($540+ $1.48g)
Total expense
Net operating income
During May, the company's actual activity was 390 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e732fe8-6aa6-4599-86a0-0cde2072281d%2F5995b1ef-71c6-4065-b965-08e3b90e8830%2F79fncnb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1]
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)
Revenue ($450.00g)
Expenses:
Wages and salaries ($11,800+ $130.00g)
Supplies ($6.00g)
Equipment rental ($2,000+ $21.00g)
Insurance ($4,100)
400
$180,000
63,800
2,400
10,400
4,100
1,132
81,832
$ 98,168
Miscellaneous ($540+ $1.48g)
Total expense
Net operating income
During May, the company's actual activity was 390 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
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