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 Revenue ($365.00q) $ 36,500 Expenses: Wages and salaries ($8,000 +$125.00q) 20,500 Supplies ($3.00q) 300 Equipment rental ($1,800+ $32.00q) 5,000 3,400 Miscellaneous (5630 +$1.88q) 810 30,010 $ 6,490 Insurance ($3,400) Total expense Net operating income During May, the company's actual activity was 105 diving-hours. Required: Prepare a flexible budget for May. 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
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 Revenue ($365.00q) $ 36,500 Expenses: Wages and salaries ($8,000 +$125.00q) 20,500 Supplies ($3.00q) 300 Equipment rental ($1,800+ $32.00q) 5,000 3,400 Miscellaneous (5630 +$1.88q) 810 30,010 $ 6,490 Insurance ($3,400) Total expense Net operating income During May, the company's actual activity was 105 diving-hours. Required: Prepare a flexible budget for May. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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
Revenue ($365.00q)
$ 36,500
Expenses:
Wages and salaries ($8,000 +$125.009)
20,500
Supplies ($3.009)
300
Equipment rental ($1,800+ $32.009)
5,000
3,400
Miscellaneous ($630 +$1.809)
810
30,010
$ 6,490
Insurance ($3,400)
Total expense
Net operating income
During May, the company's actual activity was 105 diving-hours.
Required:
Prepare a flexible budget for May.
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc80a8a85-82ce-4b91-9319-267a25cd5d83%2Fbdec3f31-3bed-4729-a9d4-a311f5fa9182%2F0gtogcu_processed.png&w=3840&q=75)
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
Revenue ($365.00q)
$ 36,500
Expenses:
Wages and salaries ($8,000 +$125.009)
20,500
Supplies ($3.009)
300
Equipment rental ($1,800+ $32.009)
5,000
3,400
Miscellaneous ($630 +$1.809)
810
30,010
$ 6,490
Insurance ($3,400)
Total expense
Net operating income
During May, the company's actual activity was 105 diving-hours.
Required:
Prepare a flexible budget for May.
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
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