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) | 400 | |
Revenue ($450.00q) | $ | 180,000 |
Expenses: | ||
Wages and salaries ($11,800 + $126.00q) | 62,200 | |
Supplies ($6.00q) | 2,400 | |
Equipment rental ($2,300 + $24.00q) | 11,900 | |
Insurance ($3,900) | 3,900 | |
Miscellaneous ($500 + $1.46q) | 1,084 | |
Total expense | 81,484 | |
Net operating income | $ | 98,516 |
During May, the company’s actual activity was 390 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole number.
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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