CH 9, 1

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companys planning budget for May appears below:

Puget Sound Divers Planning Budget For the Month Ended May 31
Budgeted diving-hours (q)	250
Revenue ($460.00q)	$ 115,000
Expenses:
Wages and salaries ($11,000 + $122.00q)	41,500
Supplies ($5.00q)	1,250
Equipment rental ($2,100 + $25.00q)	8,350
Insurance ($4,100)	4,100
Miscellaneous ($540 + $1.48q)	910
Total expense	56,110
Net operating income	$ 58,890

During May, the companys actual activity was 240 diving-hours.

Required:

Prepare a flexible budget for May. (Round your answers to the nearest whole number.)

250 $ 115,000 Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (9) Revenue ($460.009) Expenses: Wages and salaries ($11,000 + $122.009) Supplies ($5.009) Equipment rental ($2,100 + $25.009) Insurance ($4,100) Miscellaneous ($540 + $1.489) Total expense Net operating income 41,500 1,250 8,350 4,100 910 56, 110 $ 58,890 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 Actual diving-hours Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income $ 0 0