flexible budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text: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 (q)
300
Revenue ($450.00g)
$135,000
Expenses:
Wages and salaries ($11,200 + $124.00g)
Supplies ($4.00g)
Equipment rental ($2,200 + $22.00g)
Insurance ($4,000)
Miscellaneous ($510 + $1.44g)
48,400
1,200
8,800
4,000
942
Total
expense
63,342
$ 71,658
Net operating income
During May, the company's actual activity was 290 diving-hours.

Transcribed Image Text: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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