Question
Exercise 9-1 Prepare a Flexible Budget [LO9-1] Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in
Exercise 9-1 Prepare a Flexible Budget [LO9-1] 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) 350 Revenue ($430.00q) $ 150,500 Expenses: Wages and salaries ($11,300 + $122.00q) 54,000 Supplies ($4.00q) 1,400 Equipment rental ($2,300 + $21.00q) 9,650 Insurance ($3,900) 3,900 Miscellaneous ($520 + $1.50q) 1,045 Total expense 69,995 Net operating income $ 80,505 During May, the companys actual activity was 340 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
Exercise 9-1 Prepare a Flexible Budget [LO9-1]
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) | 350 | |
Revenue ($430.00q) | $ | 150,500 |
Expenses: | ||
Wages and salaries ($11,300 + $122.00q) | 54,000 | |
Supplies ($4.00q) | 1,400 | |
Equipment rental ($2,300 + $21.00q) | 9,650 | |
Insurance ($3,900) | 3,900 | |
Miscellaneous ($520 + $1.50q) | 1,045 | |
Total expense | 69,995 | |
Net operating income | $ | 80,505 |
During May, the companys actual activity was 340 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
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