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 Mayappears below:Puget Sound DiversPlanning Budgetfor the month ended may 31Budgeted diving-hours (4)Revenue ($410.000)Mages and salaries ($11,000+ $128.000)Supplies ($3.000)equipment rental ($2,100 $24.000)Insurance ($4,000)Miscellaneous ($330 + $1.484)Total expensesnet operating InconePuget Sound DiversFlexible BudgetFor the Month Ended May 31Actual diving-hoursRevenueExpenses:During May, the company's actual activity was 340 diving-hours.Required:Prepare a flexible budget for MayNote: Round your answers to the nearest whole number.Wages and salariesSuppliesEquipment rentalInsuranceMiscellaneousTotal expensesNet operating Income$ 143,50051,75010,9004,0000073,498$ 70,002

Flexible Budget : A flexible Budget helps to adjust the budgeted amount based on the actual sales.…

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 (4) nevenue ($410.000) Hages and salaries ($11,000+ $128.000) Supplies ($5.000) equipment rental ($2,100 - $24.000) Insurance ($4,000) Miscellaneous ($130+ $1.480) Total expenses net operating in one Puget Sound Divers Flexible Budget For the Month Ended May 1 $ 70,002 During May, the company's actual activity was 340 diving-hours. Required: Prepare a flexible budget for May Note: Round your answers to the nearest whole number Actual diving-hours Revenue Expenses Wages and salaries Supplies Equipment rent Insurance Miscellaneous 310 $ 143,100 Total expenses Net operating income 11,000 1,750 10,000 4,000

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 (4) nevenue ($410.000) Hages and salaries ($11,000+ $128.000) Supplies ($5.000) equipment rental ($2,100 - $24.000) Insurance ($4,000) Miscellaneous ($130+ $1.480) Total expenses net operating in one Puget Sound Divers Flexible Budget For the Month Ended May 1 $ 70,002 During May, the company's actual activity was 340 diving-hours. Required: Prepare a flexible budget for May Note: Round your answers to the nearest whole number Actual diving-hours Revenue Expenses Wages and salaries Supplies Equipment rent Insurance Miscellaneous 310 $ 143,100 Total expenses Net operating income 11,000 1,750 10,000 4,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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: Budgeted diving-hours (q) Revenue ($470.00q) Puget Sound Divers Planning Budget For the Month Ended May 31 Expenses: Wages and salaries ($11,600+ $122.00q) Supplies ($4.00q) Equipment rental ($2,400 + $24.00q) Insurance ($4,100) Miscellaneous ($520+ $1.44q) Total expense Net operating income Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: During May, the company's actual activity was 290 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.) Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income $ 300 $ 141,000 0 0 48,200 1,200 9,600 4,100 952 64,052 $76,948
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 DiversPlanning BudgetFor the Month Ended May 31 Budgeted diving-hours (q) 250 Revenue ($410.00q) $ 102,500 Expenses: Wages and salaries ($11,100 + $124.00q) 42,100 Supplies ($6.00q) 1,500 Equipment rental ($2,500 + $23.00q) 8,250 Insurance ($4,000) 4,000 Miscellaneous ($520 + $1.44q) 880 Total expense 56,730 Net operating income $ 45,770 During May, the company’s actual activity was 240 diving-hours. Required: Prepare a flexible budget for May.
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