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) Revenue ($470.00q) Expenses: Wages and salaries ($11,500+ $130.00q) Supplies ($5.00g) Equipment rental ($2,300 $25.00g) Insurance ($3,900) Miscellaneous ($530+ $1.46q) Total expense Net operating income 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 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 350 $164,500 57,000 1,750 11,050 3,900 1,041 74,741 $ 89,759
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) Revenue ($470.00q) Expenses: Wages and salaries ($11,500+ $130.00q) Supplies ($5.00g) Equipment rental ($2,300 $25.00g) Insurance ($3,900) Miscellaneous ($530+ $1.46q) Total expense Net operating income 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 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 350 $164,500 57,000 1,750 11,050 3,900 1,041 74,741 $ 89,759
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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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:
Budgeted diving-hours (q)
Revenue ($470.00q)
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Expenses:
Wages and salaries ($11,500+ $130.00q)
Supplies ($5.00q)
Equipment rental ($2,300+ $25.00g)
Insurance ($3,900)
Miscellaneous ($530+ $1.46q)
Total expense
Net operating income
Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Revenue
Expenses:
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 number.)
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
350
Total expense
Net operating income
$164,500
57,000
1,750
11,050
3,900
1,041
74,741
$ 89,759
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