Prepare a Flexible Budget [LO1]

Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the Tampa Bay area. The company’s planning budget for March appears below:

Required:
During March, the company’s activity was actually 190 diving-hours. Prepare a flexible budget for that level of activity.

Transcribed Image Text:

Gator Divers Planning Budget For the Month Ended March 31 Budgeted diving-hours (q)..... 200 Revenue ($380.00q)... $76,000 Expenses: Wages and salaries ($12,000+ $130.00q) 38,000 Supplies ($5.00q).. 1,000 Equipment rental ($2,500+ $26.00q). 7,700 Insurance ($4,200) .... 4,200 Miscellaneous ($540+ $1.50q) 840 Total expense. Net operating income 51,740 $24,260