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 company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (9) 250 Revenue ($420.00) $195,000 Expenses: Wages and salaries ($11,100 + $128.00) 43, 100 Supplies ($5.00) 1,250 Equipment rental ($2,400 + $20.089) 7,400 Insurance ($3,900) 3,900 Miscellaneous (5510 + $1.469) 875 Total expense 56,525 Net operating income $ 48,475 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 dollar.) w Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses Wages and salaries Supplies 1 1 250 $105,000 Budgeted diving-hours (9) Revenue ($429.08) Expenses : Wages and salaries ($11,180 + $128.689) Supplies ($5.00) Equipment rental (52,480 + $28.889) Insurance ($3,989) Miscellaneous ($510 + $1.469) Total expense Net operating income 2 points 43,100 1,250 7,400 3,988 875 56,525 $ 48,475 eBook Hint 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 dollar.) Print Puget Sound Divers Flexible Budget For the Month Ended May 31 References Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income Exercise 9-2 Prepare a Report Showing Revenue and Spending Varlances [LO9-2] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (9) 7,880 Revenue ($4.189) $ 31,989 Expenses Packing supplies ($0.389) 2,340 Oyster bed maintenance ($3,500) 3,600 Wages and salaries ($2,488 + $0.309) 4,740 Shipping (58.789) 5,460 Utilities ($1,260) 1,260 Other (5440 + $0.019) 518 Total expense 17,918 $ 14,062 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,80 Revenue $ 26,800 Expenses: Packing supplies 2,51e Oyster bed maintenance 3,460 Wages and salaries 5,15e Shipping 5,190 Utilities 1,070 Other Total expense 18.518 Net operating income $ 3.282 Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,800 Revenue $ 26,888 Expenses: Packing supplies 2,51e Oyster bed maintenance 3,460 Wages and salaries 5,15e Shipping 5,190 Utilities 1,070 Other 1,138 Total expense 18.518 Net operating income $ 8,282 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e. zero variance). Input all amounts as positive values.) ces Quiloene 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
