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) | 300 | |
| Revenue ($430.00q) | $ | 129,000 |
| Expenses: | ||
| Wages and salaries ($11,600 + $128.00q) | 50,000 | |
| Supplies ($4.00q) | 1,200 | |
| Equipment rental ($2,100 + $21.00q) | 8,400 | |
| Insurance ($4,200) | 4,200 | |
| Miscellaneous ($520 + $1.48q) | 964 | |
| Total expense | 64,764 | |
| Net operating income | $ | 64,236 |
Required:
During May, the company’s activity was actually 290 diving-hours. Complete the following flexible budget for that level of activity. (Round your final answer to nearest dollar amount.)
| Flexible Budget | |
| Diving Hours | 290 |
| Revenue | $ 124,700 |
| Expenses | |
| Wages and Salaries | $ 48,720 |
| Supplies | $ 1,160 |
| Equipment rental | $ 8,190 |
| Insurance | $ 4,200 |
| Miscellaneous | $ 949 |
| Total Expenses | $ 63,219 |
| Net Operating Income | $ 61,481 |
Get Answers For Free
Most questions answered within 1 hours.