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 31 400 $ 176,000 Budgeted diving-hours (q) Revenue ($440.004) Expenses: Wages and salaries ($11,600+ $120.00q) Supplies ($4.000) Equipment rental ($2,300 + $25.009) Insurance ($4,000) Miscellaneous ($540 + $1.42q) Total expense Net operating income 59,600 1,600 12,300 4,000 1,108 78,608 $ 97,392 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.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income
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 31 400 $ 176,000 Budgeted diving-hours (q) Revenue ($440.004) Expenses: Wages and salaries ($11,600+ $120.00q) Supplies ($4.000) Equipment rental ($2,300 + $25.009) Insurance ($4,000) Miscellaneous ($540 + $1.42q) Total expense Net operating income 59,600 1,600 12,300 4,000 1,108 78,608 $ 97,392 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.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
400
$ 176,000
Budgeted diving-hours (q)
Revenue ($440.004)
Expenses:
Wages and salaries ($11,600+ $120.00q)
Supplies ($4.000)
Equipment rental ($2,300 + $25.009)
Insurance ($4,000)
Miscellaneous ($540 + $1.42q)
Total expense
Net operating income
59,600
1,600
12,300
4,000
1,108
78,608
$ 97,392
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.)
Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Revenue
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense
Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3497febb-c44a-4cc2-9fe0-66023ea3a812%2Fd30ff8e9-0e48-4e4d-b614-983cc3ea159b%2F4kbrk2p_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
400
$ 176,000
Budgeted diving-hours (q)
Revenue ($440.004)
Expenses:
Wages and salaries ($11,600+ $120.00q)
Supplies ($4.000)
Equipment rental ($2,300 + $25.009)
Insurance ($4,000)
Miscellaneous ($540 + $1.42q)
Total expense
Net operating income
59,600
1,600
12,300
4,000
1,108
78,608
$ 97,392
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.)
Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Revenue
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense
Net operating income
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