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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) | 100 |
---|---|
Revenue ($365.00q) | $ 36,500 |
Expenses: | |
Wages and salaries ($8,000 + $125.00q) | 20,500 |
Supplies ($3.00q) | 300 |
Equipment rental ($1,800 + $32.00q) | 5,000 |
Insurance ($3,400) | 3,400 |
Miscellaneous ($630 + $1.80q) | 810 |
Total expense | 30,010 |
Net operating income | $ 6,490 |
During May, the companys actual activity was 105 diving-hours.
Required:
Prepare a flexible budget for May.
Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating incomeStep by Step Solution
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