Prepare a flexible budget for May
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.
Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
![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 (q)
350
$150, 500
Revenue ($430.00q)
Expenses:
Wages and salaries ($11, 200 + $120.00q)
Supplies ($6.e0q)
Equipment rental ($2,200 + $23.00q)
Insurance ($3,900)
Miscellaneous ($540 + $1.46q)
Total expense
53, 200
2,100
10,250
3,900
1,051
70,501
$ 79,999
Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F43ee94ef-72d6-420b-afde-dad6101e81bf%2Fee3c58af-2d78-48dc-8984-c764b9cfda51%2F6t8mnz9_processed.png&w=3840&q=75)
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