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 (9) 250 Revenue ($410.009) Expenses: Wages and salaries ($11,100 + $124.009) Supplies ($3.009) Equipment rental ($2,000+ $23.009) Insurance ($4,000) Miscellaneous ($500+ $1.44q) Total expense Net operating income $ 102,500 42,100 750 7,750 4,000 860 55,460 $ 47,040 During May, the company's actual activity was 240 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
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 (9) 250 Revenue ($410.009) Expenses: Wages and salaries ($11,100 + $124.009) Supplies ($3.009) Equipment rental ($2,000+ $23.009) Insurance ($4,000) Miscellaneous ($500+ $1.44q) Total expense Net operating income $ 102,500 42,100 750 7,750 4,000 860 55,460 $ 47,040 During May, the company's actual activity was 240 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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![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 (9)
250
Revenue ($410.009)
Expenses:
Wages and salaries ($11,100 + $124.009)
Supplies ($3.009)
Equipment rental ($2,000+ $23.009)
Insurance ($4,000)
Miscellaneous ($500 +$1.44q)
Total expense
Net operating income
$ 102,500
42,100
750
7,750
4,000
860
55,460
$ 47,040
During May, the company's actual activity was 240 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
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
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e6d9cd5-3f4a-4fb7-a7d7-0645c8758efe%2Fb8791fb4-7afe-47c5-940a-be953b521233%2Fzzy7mbc_processed.png&w=3840&q=75)
Transcribed Image Text: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 (9)
250
Revenue ($410.009)
Expenses:
Wages and salaries ($11,100 + $124.009)
Supplies ($3.009)
Equipment rental ($2,000+ $23.009)
Insurance ($4,000)
Miscellaneous ($500 +$1.44q)
Total expense
Net operating income
$ 102,500
42,100
750
7,750
4,000
860
55,460
$ 47,040
During May, the company's actual activity was 240 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
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
0
0
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