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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) | 300 | |
Revenue ($400.00q) | $ | 120,000 |
Expenses: | ||
Wages and salaries ($11,200 + $126.00q) | 49,000 | |
Supplies ($4.00q) | 1,200 | |
Equipment rental ($2,000 + $23.00q) | 8,900 | |
Insurance ($4,000) | 4,000 | |
Miscellaneous ($540 + $1.44q) | 972 | |
Total expense | 64,072 | |
Net operating income | $ | 55,928 |
During May, the companys actual activity was 290 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
Revenue:
Expenses
wages and salaries:
supplies::
Equipment rental:
Insurance:
Miscellaneous:
Total expense:
Net Operating Income:
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