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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) | 400 |
---|---|
Revenue ($460.00q) | $ 184,000 |
Expenses: | |
Wages and salaries ($11,500 + $130.00q) | 63,500 |
Supplies ($5.00q) | 2,000 |
Equipment rental ($2,300 + $20.00q) | 10,300 |
Insurance ($4,000) | 4,000 |
Miscellaneous ($530 + $1.50q) | 1,130 |
Total expense | 80,930 |
Net operating income | $ 103,070 |
During May, the companys actual activity was 390 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
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