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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) | 250 |
---|---|
Revenue ($390.00q) | $ 97,500 |
Expenses: | |
Wages and salaries ($11,400 + $128.00q) | 43,400 |
Supplies ($3.00q) | 750 |
Equipment rental ($2,500 + $21.00q) | 7,750 |
Insurance ($4,000) | 4,000 |
Miscellaneous ($540 + $1.42q) | 895 |
Total expense | 56,795 |
Net operating income | $ 40,705 |
During May, the companys actual activity was 240 diving-hours.
Required:
Prepare a flexible budget for May.
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