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) 400 Revenue ($420.00q) $ 168,000 Expenses: Wages and salaries ($11,500 + $122.00q) 60,300 Supplies ($5.00q) 2,000 Equipment rental ($2,300 + $21.00q) 10,700 Insurance ($4,000) 4,000 Miscellaneous ($540 + $1.46q) 1,124 Total expense 78,124 Net operating income $ 89,876 During May, the company’s actual activity was 390 diving-hours. Required: Pre
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.
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) | 400 | |
| Revenue ($420.00q) | $ | 168,000 |
| Expenses: | ||
| Wages and salaries ($11,500 + $122.00q) | 60,300 | |
| Supplies ($5.00q) | 2,000 | |
| Equipment rental ($2,300 + $21.00q) | 10,700 | |
| Insurance ($4,000) | 4,000 | |
| Miscellaneous ($540 + $1.46q) | 1,124 | |
| Total expense | 78,124 | |
| Net operating income | $ | 89,876 |
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 number.)
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