Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients
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Question:
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 ($400.00q) | $ 100,000 |
Expenses: | |
Wages and salaries ($11,700 + $128.00q) | 43,700 |
Supplies ($6.00q) | 1,500 |
Equipment rental ($2,000 + $23.00q) | 7,750 |
Insurance ($3,800) | 3,800 |
Miscellaneous ($540 + $1.44q) | 900 |
Total expense | 57,650 |
Net operating income | $ 42,350 |
During May, the companys actual activity was 240 diving-hours.
Required:
Prepare a flexible budget for May.
Note: Round your answers to the nearest whole number.
Posted Date: