Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (g)....... Revenue ($365.00q) Expenses: Wages and salaries ($8,000+ $125.00q) Supplies ($3.00g)..... Equipment rental ($1,800+ $32.00q) Insurance ($3,400) Miscellaneous ($630+ $1.80q) Total expense Net operating income. Required: During May, the company's activity was actually 105 diving-hours. Prepare a flexible budget for that level of activity. Month Food Sales Drink Sales Food Source: Managerial Accounting for Managers by Eric W. Noreen, Peter C. Brewer, and Ray H. Garrison 2nd edition published by McGraw-Hill February 15000 4500 March 15500 4800 April 17000 5400 May 17800 6300 June 23000 6900 July 25000 8100 August 22500 7100 September 20400 6550 From the information given below prepare a cash budget for the six months, commencing 1st April, 20--. Purchases 100 $36,500 6000 6100 6800 7000 7300 8300 7300 7100 20,500 300 5,000 3,400 810 Drink Purchases 30,010 $ 6,490 2200 2400 2700 3200 3400 4100 3600 3200 Labour Cost Overheads 6000 6200 6500 6900 7500 7400 6700 6100 5200 5200 5400 5600 5800 5700 5300 5100 Notes: (1) Assume that all sales are cash sales; (ii) The annual interest on the company's investments, $800, will be received in July; (iii) The time lag in the payment of suppliers is two months; in the payment of overheads the time lag is one month; in the case of the labour costs it is nil; (iv) New kitchen plant costing $5 000 will be purchased in May and paid for the following month; (v) The bank balance of the company on 1st April, 20-- was $15 000.

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Required: During May, the company's activity was actually 105 diving-hours. Prepare a flexible budget for that level of activity. Source: Managerial Accounting for Managers by Eric W. Noreen, Peter C. Brewer, and Ray H. Garrison 2nd edition published by McGraw-Hill From the information given below prepare a cash budget for the six months, commencing Ist April, 20--. Notes: (1) Assume that all sales are cash sales; (ii) The annual interest on the company's investments, $800, will be received in July: (iii) The time lag in the payment of suppliers is two months; in the payment of overheads the time lag is one month: in the case of the labour costs it is nil; (iv) New kitchen plant costing $5000 will be purchased in May and paid for the following month; (v) The bank balance of the compuny on Ist April, 20-- was $15 000