Exercise 9-1 Prepare a Flexible Budget (L09-1] 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: 4ea $156, eee Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($390.00) Expenses Wages and salaries ($11,100 + $128.689) Supplies ($5.00) Equipment rental ($2,380 + $24.08) Insurance ($3,890) Miscellaneous ($510 + $1.489) Total expense Net operating income 62,388 2,000 11,900 3,800 1,102 81, 182 $ 74,898 During May, the company's actual activity was 390 diving hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) HUIS. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense 0 Net operating income $ 0 Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7400 pounds of oysters in August. The company's flexible budget for August appears below: Quitcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (a) 7,400 Revenue (54.659) $29,970 Expenses: Packing supplies ($0.359) 2,590 Oyster bed maintenance ($3,400) 3,400 Wages and salaries ($2,300 - 50.489) 5,260 Shipping ($0.709) 5,180 Utilities ($1,230) 1,230 Other (5450 + $0.019) 524 Total expense 18,184 $11,786 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,400 Revenue $ 27,200 Expenses: Packing supplies 2,760 Oyster bed maintenance 3,260 Wages and salaries 5,670 Shipping 4,910 Utilities 1,040 Other 1.144 Total expense 18,784 $ 8,416 Net operating income Required: Calculate the company's revenue and spending variances for August (indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income