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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 Budgeted diving-hours (q) 350 Revenue ($420.00q) $ 147,000 Expenses:   Wages and salaries ($11,700 + $124.00q) 55,100 Supplies ($6.00q) 2,100 Equipment rental ($2,400 + $25.00q) 11,150 Insurance ($4,000) 4,000 Miscellaneous ($500 + $1.42q) 997 Total expense 73,347 Net operating income $ 73,653   During May, the company’s actual activity was 340 diving-hours.   Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)

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 ($420.00q) $ 147,000 Expenses:   Wages and salaries ($11,700 + $124.00q) 55,100 Supplies ($6.00q) 2,100 Equipment rental ($2,400 + $25.00q) 11,150 Insurance ($4,000) 4,000 Miscellaneous ($500 + $1.42q) 997 Total expense 73,347 Net operating income $ 73,653   During May, the company’s actual activity was 340 diving-hours.   Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Budgeted diving-hours (q) 350
Revenue ($420.00q) $ 147,000
Expenses:  
Wages and salaries ($11,700 + $124.00q) 55,100
Supplies ($6.00q) 2,100
Equipment rental ($2,400 + $25.00q) 11,150
Insurance ($4,000) 4,000
Miscellaneous ($500 + $1.42q) 997
Total expense 73,347
Net operating income $ 73,653

 

During May, the company’s actual activity was 340 diving-hours.

 

Required:

Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)

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) Revenue ($420.00q) Expenses: Wages and salaries ($11,700 + $124.00q) Supplies ($6.00q) Equipment rental ($2,400 + $25.00q) Insurance ($4,000) 350 $ 147,000 55,100 2,100 11,150 4,000 997 Miscellaneous ($500+ $1.42q) Total expense Net operating income During May, the company's actual activity was 340 diving-hours. Puget Sound Divers 73,347 $ 73,653 Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
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 Budgeted diving-hours (q) Revenue ($420.00q) Expenses: Wages and salaries ($11,700 + $124.00q) Supplies ($6.00q) Equipment rental ($2,400 + $25.00q) Insurance ($4,000) 350 $ 147,000 55,100 2,100 11,150 4,000 997 Miscellaneous ($500+ $1.42q) Total expense Net operating income During May, the company's actual activity was 340 diving-hours. Puget Sound Divers 73,347 $ 73,653 Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
During May, the company's actual activity was 340 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) 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 $ 0 0
Transcribed Image Text:During May, the company's actual activity was 340 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) 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 $ 0 0
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