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
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) | 350 | |
| Revenue ($420.00q) | $ | 147,000 |
| Expenses: | ||
| Wages and salaries ($11,700 + $120.00q) | 53,700 | |
| Supplies ($6.00q) | 2,100 | |
| Equipment rental ($2,000 + $22.00q) | 9,700 | |
| Insurance ($4,100) | 4,100 | |
| Miscellaneous ($530 + $1.44q) | 1,034 | |
| Total expense | 70,634 | |
| Net operating income | $ | 76,366 |
During May, the companys actual activity was 340 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
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) | 350 | |
| Revenue ($420.00q) | $ | 147,000 |
| Expenses: | ||
| Wages and salaries ($11,700 + $120.00q) | 53,700 | |
| Supplies ($6.00q) | 2,100 | |
| Equipment rental ($2,000 + $22.00q) | 9,700 | |
| Insurance ($4,100) | 4,100 | |
| Miscellaneous ($530 + $1.44q) | 1,034 | |
| Total expense | 70,634 | |
| Net operating income | $ | 76,366 |
During May, the companys actual activity was 340 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
5. Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the companys costs:
| Fixed Cost per Month | Cost per Car Washed | ||||
| Cleaning supplies | $ | 0.40 | |||
| Electricity | $ | 1,200 | $ | 0.06 | |
| Maintenance | $ | 0.25 | |||
| Wages and salaries | $ | 4,500 | $ | 0.40 | |
| Depreciation | $ | 8,300 | |||
| Rent | $ | 2,100 | |||
| Administrative expenses | $ | 1,500 | $ | 0.03 | |
For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.20 per car washed.
Required:
Prepare the companys flexible budget for August.
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