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 31Budgeted diving-hours (q)350Revenue ($420.00q)$ 147,000Expenses: Wages and salaries ($11,700 + $124.00q)55,100Supplies ($6.00q)2,100Equipment rental ($2,400 + $25.00q)11,150Insurance ($4,000)4,000Miscellaneous ($500 + $1.42q)997Total expense73,347Net operating income$ 73,653 During May, the company’s actual activity was 340 diving-hours. Required:Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) **Puget Sound Divers Budget Analysis**Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. Below is the company's planning budget for May:**Puget Sound Divers** **Planning Budget** *For the Month Ended May 31*- **Budgeted diving-hours (q):** 350- **Revenue ($420.00q):** $147,000**Expenses:**- **Wages and salaries ($11,700 + $124.00q):** $55,100- **Supplies ($6.00q):** $2,100- **Equipment rental ($2,400 + $25.00q):** $11,150- **Insurance:** $4,000- **Miscellaneous ($500 + $1.42q):** $997**Total expense:** $73,347 **Net operating income:** $73,653**Additional Information:**During May, the company’s actual activity was 340 diving-hours.**Required Task:**Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)**Reference for Calculations:**To prepare a flexible budget, adjust the expenses and revenue based on the actual diving-hours (in this case, 340 hours). This allows for a more accurate comparison against actual performance. **During May, the company’s actual activity was 340 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** | 0 || **Net operating income** | $0 |---This table outlines a flexible budget structure for Puget Sound Divers for May, focusing on several key financial elements including revenue and a variety of expenses. It’s designed to adjust based on actual activity, specifically referring to the 340 diving-hours recorded in May.

The flexible budget aids in determining the business's anticipated expenditures, revenues, and…

Answered: Puget Sound Divers is a company that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

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
Revenue ($420.00q)	$ 147,000
Expenses:
Wages and salaries ($11,700 + $124.00q)	55,100
Supplies ($6.00q)	2,100
Equipment rental ($2,400 + $25.00q)	11,150
Insurance ($4,000)	4,000
Miscellaneous ($500 + $1.42q)	997
Total expense	73,347
Net operating income	$ 73,653

During May, the company’s actual activity was 340 diving-hours.

Required:

Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)

**Puget Sound Divers Budget Analysis**

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. Below is the company's planning budget for May:

**Puget Sound Divers**
**Planning Budget**
*For the Month Ended May 31*

- **Budgeted diving-hours (q):** 350
- **Revenue ($420.00q):** $147,000

**Expenses:**
- **Wages and salaries ($11,700 + $124.00q):** $55,100
- **Supplies ($6.00q):** $2,100
- **Equipment rental ($2,400 + $25.00q):** $11,150
- **Insurance:** $4,000
- **Miscellaneous ($500 + $1.42q):** $997

**Total expense:** $73,347
**Net operating income:** $73,653

**Additional Information:**

During May, the company’s actual activity was 340 diving-hours.

**Required Task:**

Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)

**Reference for Calculations:**

To prepare a flexible budget, adjust the expenses and revenue based on the actual diving-hours (in this case, 340 hours). This allows for a more accurate comparison against actual performance.

**During May, the company’s actual activity was 340 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** | 0 |
| **Net operating income** | $0 |

---

This table outlines a flexible budget structure for Puget Sound Divers for May, focusing on several key financial elements including revenue and a variety of expenses. It’s designed to adjust based on actual activity, specifically referring to the 340 diving-hours recorded in May.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions