Exercise 9-1 Prepare a Flexible Budget [LO9-1] Puget Sound Divers is a company t

Question

Exercise 9-1 Prepare a Flexible Budget [LO9-1] 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 (g) 250 Revenue ($450.00q) Expenses: $112, 500 Wages and salaries ($12,000 + $124.00g) Supplies ($3.00q) Equipment rental ($2,200 43,000 750 $23.00g) Insurance ($3,900) Miscellaneous ($530$1.44q) 7,950 3,900 890 , 490 56,010 Total expense Net operating income During May, the company's actual activity was 240 diving-hours. Required Prepare a flexible budget for May. (Round your answers to the nearest whole number.) Puget Sound Divers Flexible Budget

Explanation / Answer

Flexible budget Budgeted diving hours 240 Revenue 108000 450Q Expenses Wages and salaries 41760 12000+124Q Supplies 720 3q Equipment rental 7720 2200+23q Insurance 3900 3900 Misc. Expense 876 530+1.44q Total expense 54976 Net operating income 53024

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