Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the Tampa Bay area. The companys planning budget

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

Gator Divers Planning Budget For the Month Ended March 31
Budgeted diving-hours (q) 350
Revenue ($450q) $ 157,500
Expenses:
Wages and salaries ($11,500 + $124q) 54,900
Supplies ($3q) 1,050
Equipment rental ($2,300 + $24q) 10,700
Insurance ($4,100) 4,100
Miscellaneous ($500 + $1.42q) 997
Total expense 71,747
Net operating income $ 85,753

Required:

During March, the companys activity was actually 340 diving-hours. Prepare a flexible budget for that level of activity. (Input all amounts as positive values. Round your answers to the nearest dollar amount.)

Gator Divers Flexible Budget For the Month Ended March 31
Revenue $
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense
Net operating income $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Home bias has a potential information-based explanation. Discuss.

Answered: 1 week ago