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)		350
Revenue ($400.00q)	$	140,000
Expenses:
Wages and salaries ($11,600 + $126.00q)		55,700
Supplies ($4.00q)		1,400
Equipment rental ($2,500 + $21.00q)		9,850
Insurance ($4,100)		4,100
Miscellaneous ($540 + $1.44q)		1,044
Total expense		72,094
Net operating income	$	67,906

  

Required:

During May, the company’s activity was actually 340 diving-hours. Complete the following flexible budget for that level of activity.

Answer 1

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