Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Pug 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) 100 $ 36,500 Revenue ($365.00q) Expenses: Wages and salaries ($8,000 + $125.00q) Supplies ($3.009) Equipment rental ($1,800 + $32.00q) Insurance ($3,400) Miscellaneous ($630 +$1.80q) Total expense Net operating income 20,500 $300 5,000 3,400 810 30,010 $ 6,490 During May, the company's actual activity was 105 diving-hours. Required: Prepare a flexible budget for May.
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Pug 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) 100 $ 36,500 Revenue ($365.00q) Expenses: Wages and salaries ($8,000 + $125.00q) Supplies ($3.009) Equipment rental ($1,800 + $32.00q) Insurance ($3,400) Miscellaneous ($630 +$1.80q) Total expense Net operating income 20,500 $300 5,000 3,400 810 30,010 $ 6,490 During May, the company's actual activity was 105 diving-hours. Required: Prepare a flexible budget for May.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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)
100
$ 36,500
Revenue ($365.00q)
Expenses:
Wages and salaries ($8,000 + $125.00q)
Supplies ($3.009)
Equipment rental ($1,800+ $32.00q)
Insurance ($3,400)
Miscellaneous ($630 + $1.80q)
Total expense
Net operating income
20,500
300
5,000
3,400
810
30,010
$ 6,490
During May, the company's actual activity was 105 diving-hours.
Required:
Prepare a flexible budget for May.
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