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flexible budget

flexible budget

FINANCIAL ACCOUNTING
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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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: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.
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
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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