Question
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
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) | 250 | |
| Revenue ($460.00q) | $ | 115,000 |
| Expenses: | ||
| Wages and salaries ($11,300 + $122.00q) | 41,800 | |
| Supplies ($5.00q) | 1,250 | |
| Equipment rental ($2,300 + $23.00q) | 8,050 | |
| Insurance ($4,000) | 4,000 | |
| Miscellaneous ($540 + $1.44q) | 900 | |
| Total expense | 56,000 | |
| Net operating income | $ | 59,000 |
During May, the companys actual activity was 240 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
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Coping With Financial Accounting 1 For Senior Secondary Schools And Undergraduate Studies
Authors: Festus Chukwunwendu Akpotohwo ,Stella Alfred-Jaja Wellington-Igonibo ,Cletus Ogeibiri
1st Edition
3659611034, 978-3659611032
