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 company’s planning budget for May appears below:
Puget Sound Divers Planning Budget For the Month Ended May 31 | |
Budgeted diving-hours (q) | 200 |
---|---|
Revenue ($450.00q) | $ 90,000 |
Expenses: | |
Wages and salaries ($11,800 + $128.00q) | 37,400 |
Supplies ($5.00q) | 1,000 |
Equipment rental ($2,400 + $22.00q) | 6,800 |
Insurance ($3,800) | 3,800 |
Miscellaneous ($540 + $1.46q) | 832 |
Total expense | 49,832 |
Net operating income | $ 40,168 |
During May, the company’s actual activity was 190 diving-hours.
Required:
Prepare a flexible budget for May.
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
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