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:

During May, the companys actual activity was 390 diving-hours.

Required:

Prepare a flexible budget for May.

PUGET SOUND DIVERS

FLEXIBLE BUDGET

FOR THE MONTH ENDED MAY 31

(actual diving-hours or Budgeted diving-hours)
Revenue
Expenses:
wages & Saleries
Supplies
Equiptment Rental
Insurance
Miscellenious
Total Expense
Net Operating Income

Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (9) 400 $184,000 Revenue $460.00) Expenses : Wages and salaries ($11,700 + $126.00) Supplies ($3.009) Equipment rental ($2,100 + $26.009) Insurance ($4,100) Miscellaneous ($540 + $1.469) Total expense Net operating income 62,100 1,200 12,500 4,100 1,124 81,024 $102,976