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 ($400.00q) | $ | 100,000 |
| Expenses: | ||
| Wages and salaries ($11,400 + $124.00q) | 42,400 | |
| Supplies ($3.00q) | 750 | |
| Equipment rental ($2,300 + $24.00q) | 8,300 | |
| Insurance ($3,800) | 3,800 | |
| Miscellaneous ($520 + $1.46q) | 885 | |
| Total expense | 56,135 | |
| Net operating income | $ | 43,865 |
During May, the companys activity was actually 240 diving-hours. Complete the following flexible budget for that level of activity. (Round your answers to nearest whole dollar.)
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
4th Canadian edition
978-1118856994
