E9-1 - Please explain how you arrived at your answers. Thank you! Exercise 9-1 P
ID: 2416432 • Letter: E
Question
E9-1 - Please explain how you arrived at your answers. Thank you!
Exercise 9-1 Prepare a Flexible Budget [LO1]
Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the Tampa Bay area. The company’s planning budget for March appears below:
During March, the company’s activity was actually 240 diving-hours. Complete the flexible budget for that level of activity. (Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)
Exercise 9-1 Prepare a Flexible Budget [LO1]
Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the Tampa Bay area. The company’s planning budget for March appears below:
Gator DiversPlanning Budget
For the Month Ended March 31 Budgeted diving-hours (q) 250 Revenue ($460q) $ 115,000 Expenses: Wages and salaries ($11,900 + $122q) 42,400 Supplies ($5q) 1,250 Equipment rental ($2,300 + $21q) 7,550 Insurance ($4,100) 4,100 Miscellaneous ($510 + $1.44q) 870 Total expense 56,170 Net operating income $ 58,830 Required:
During March, the company’s activity was actually 240 diving-hours. Complete the flexible budget for that level of activity. (Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)
Gator DiversFlexible Budget
For the Month Ended March 31 Revenue $ Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income $
Explanation / Answer
Planning Budget For the Month Ended March 31 Budgeted diving-hours (q) 240 Revenue ($460q) $ 110400 Expenses: Wages and salaries ($11,900 + $122q) 40704 Supplies ($5q) 1200 Equipment rental ($2,300 + $21q) 7248 Insurance ($4,100) 3936 Miscellaneous ($510 + $1.44q) 835 Total expense 53923 Net operating income $ 56477
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