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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) | 350 | |
Revenue ($420.00q) | $ | 147,000 |
Expenses: | ||
Wages and salaries ($11,000 + $120.00q) | 53,000 | |
Supplies ($3.00q) | 1,050 | |
Equipment rental ($2,300 + $21.00q) | 9,650 | |
Insurance ($4,100) | 4,100 | |
Miscellaneous ($520 + $1.44q) | 1,024 | |
Total expense | 68,824 | |
Net operating income | $ | 78,176 |
During May, the companys actual activity was 340 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
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