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 S Budgeted diving-hours (q) Revenue ($400.009) Expenses: Wages and salaries ($11,700 + $128.00q) Supplies ($3.00q) Equipment rental ($2,400 + $26.00q) Insurance ($4,000) Miscellaneous ($530 + $1.48q) Total expense Net operating income 400 $ 160,000 62,900 1,200 12,800 4,000 1,122 82,022 $ 77,978 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.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
S
Budgeted diving-hours (q)
Revenue ($400.009)
Expenses:
Wages and salaries ($11,700 + $128.00q)
Supplies ($3.00q)
Equipment rental ($2,400 + $26.00q)
Insurance ($4,000)
Miscellaneous ($530 + $1.48q)
Total expense
Net operating income
400
$ 160,000
62,900
1,200
12,800
4,000
1,122
82,022
$ 77,978
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.)
Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Revenue
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense
Net operating income
Transcribed Image Text: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 S Budgeted diving-hours (q) Revenue ($400.009) Expenses: Wages and salaries ($11,700 + $128.00q) Supplies ($3.00q) Equipment rental ($2,400 + $26.00q) Insurance ($4,000) Miscellaneous ($530 + $1.48q) Total expense Net operating income 400 $ 160,000 62,900 1,200 12,800 4,000 1,122 82,022 $ 77,978 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.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income
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