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:Budgeted diving-hours (q)Revenue ($450.00q)Expenses:Wages and salaries ($11,600 + $124.00q)Supplies ($5.00q)Equipment rental ($2,500 + $21.00q)Insurance ($3,900)Puget Sound DiversPlanning BudgetFor the Month Ended May 31Puget Sound DiversFlexible BudgetFor the Month Ended May 31RevenueExpenses:Miscellaneous ($500+ $1.44q)Total expenseNet operating incomeDuring May, the company's actual activity was 290 diving-hours.Required:Prepare a flexible budget for May. (Round your answers to the nearest whole number.)Wages and salariesSuppliesEquipment rentalInsuranceMiscellaneousTotal expenseNet operating income300$ 135,00048, 8001,5008,8003,90093263,932$ 71,068

Flexible Budget are prepared based on the Actual results. The Sales revenue and Variable cost will…

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 ($450.00q) Expenses: Wages and salaries ($11,600 + $124.00q) Supplies ($5.00g) Equipment rental ($2,500+ $21.00q) Insurance ($3,900) Miscellaneous ($500+ $1.44q) Total expense Net operating income 300 $ 135,000 48,800 1,500 8,800 3,900 932 63,932 $ 71,068 During May, the company's actual activity was 290 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.)

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 ($450.00q) Expenses: Wages and salaries ($11,600 + $124.00q) Supplies ($5.00g) Equipment rental ($2,500+ $21.00q) Insurance ($3,900) Miscellaneous ($500+ $1.44q) Total expense Net operating income 300 $ 135,000 48,800 1,500 8,800 3,900 932 63,932 $ 71,068 During May, the company's actual activity was 290 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 38P: Friendly Bank is attempting to determine the cost behavior of its small business lending operations....

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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 DiversPlanning BudgetFor the Month Ended May 31 Budgeted diving-hours (q) 250 Revenue ($390.00q) $ 97,500 Expenses: Wages and salaries ($11,900 + $126.00q) 43,400 Supplies ($5.00q) 1,250 Equipment rental ($2,200 + $21.00q) 7,450 Insurance ($4,000) 4,000 Miscellaneous ($500 + $1.48q) 870 Total expense 56,970 Net operating income $ 40,530 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 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 DiversPlanning BudgetFor the Month Ended May 31 Budgeted diving-hours (q) 250 Revenue ($470.00q) $ 117,500 Expenses: Wages and salaries ($11,200 + $124.00q) 42,200 Supplies ($5.00q) 1,250 Equipment rental ($2,400 + $24.00q) 8,400 Insurance ($4,100) 4,100 Miscellaneous ($510 + $1.48q) 880 Total expense 56,830 Net operating income $ 60,670 During May, the company’s actual activity was 240 diving-hours. Required: Prepare a flexible budget for May.
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 DiversPlanning BudgetFor the Month Ended May 31 Budgeted diving-hours (q) 300 Revenue ($460.00q) $ 138,000 Expenses: Wages and salaries ($11,600 + $120.00q) 47,600 Supplies ($4.00q) 1,200 Equipment rental ($2,200 + $21.00q) 8,500 Insurance ($4,000) 4,000 Miscellaneous ($510 + $1.48q) 954 Total expense 62,254 Net operating income $ 75,746 During May, the company’s actual activity was 290 diving-hours. Required: Prepare a flexible budget for May. ( 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
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 DiversPlanning BudgetFor the Month Ended May 31 Budgeted diving-hours (q) 350 Revenue ($450.00q) $ 157,500 Expenses: Wages and salaries ($11,400 + $126.00q) 55,500 Supplies ($6.00q) 2,100 Equipment rental ($2,100 + $21.00q) 9,450 Insurance ($4,100) 4,100 Miscellaneous ($520 + $1.42q) 1,017 Total expense 72,167 Net operating income $ 85,333 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…
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 DiversPlanning BudgetFor the Month Ended May 31 Budgeted diving-hours (q) 400 Revenue ($420.00q) $ 168,000 Expenses: Wages and salaries ($11,500 + $122.00q) 60,300 Supplies ($5.00q) 2,000 Equipment rental ($2,300 + $21.00q) 10,700 Insurance ($4,000) 4,000 Miscellaneous ($540 + $1.46q) 1,124 Total expense 78,124 Net operating income $ 89,876 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 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 DiversPlanning BudgetFor the Month Ended May 31 Budgeted diving-hours (q) 400 Revenue ($460.00q) $ 184,000 Expenses: Wages and salaries ($11,200 + $128.00q) 62,400 Supplies ($5.00q) 2,000 Equipment rental ($2,300 + $21.00q) 10,700 Insurance ($4,100) 4,100 Miscellaneous ($520 + $1.50q) 1,120 Total expense 80,320 Net operating income $ 103,680 During May, the company’s actual activity was 390 diving-hours. DO NOT GIVE SOLUTION IN IMAGE FORMAT Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
Paleo Bay Divers is a company that provides diving services such as underwater ship repairs to clients in the Paleo Bay area. The company's planning budget for July appears below: Paleo Bay Divers Planning Budget For the Month Ended July 31 Budgeted diving-hours (q) 200 Revenue (370.00q) 74,000 Expenses: Wages and salaries (15,000 + 130.00q) 41,000 Supplies (2.75q) 550 Equipment rental (2,200 + 33.00q) 8,800 Insurance (6,200) 6,200 Miscellaneous (850 + 2.10q) 1,270 Total expenses 57,820 Net operating income 16,180 During July, the company's actual activity was 160 diving-hours. ------------------------------------------- Prepare a flexible budget. According to the flexible budget, how much revenues did Paleo Bay Divers receive in July?
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clientsin the Puget Sound area. The company’s planning budget for May appears below:Puget Sound DiversPlanning BudgetFor the Month Ended May 31Budgeted diving-hours (q) ........................................... 100Revenue ($365.00q) .................................................... $36,500Expenses:Wages and salaries ($8,000 $125.00q) ............... 20,500Supplies ($3.00q) ..................................................... 300Equipment rental ($1,800 $32.00q) ..................... 5,000Insurance ($3,400) ................................................... 3,400Miscellaneous ($630 $1.80q) ............................... 810Total expense .............................................................. 30,010Net operating income .................................................. $ 6,490Required:During May, the company’s activity was actually 105 diving-hours. Prepare a flexible budget…
The Franklin Management Association held its annual public relations luncheon in April Year 2. Based on the previous year’s results, the organization allocated $24,818 of its operating budget to cover the cost of the luncheon. To ensure that costs would be appropriately controlled, Molly Hubbard, the treasurer, prepared the following budget for the Year 2 luncheon. The budget for the luncheon was based on the following expectations: The meal cost per person was expected to be $12.50. The cost driver for meals was attendance, which was expected to be 1,470 individuals. Postage was based on $0.58 per invitation and 3,350 invitations were expected to be mailed. The cost driver for postage was number of invitations mailed. The facility charge is $1,700 for a room that will accommodate up to 1,600 people; the charge for one to hold more than 1,600 people is $2,200. A fixed amount was designated for printing, decorations, the speaker’s gift, and publicity. FRANKLIN MANAGEMENT…
The Finch Management Association held its annual public relations luncheon in April Year 2. Based on the previous year’s results, the organization allocated $24,312 of its operating budget to cover the cost of the luncheon. To ensure that costs would be appropriately controlled, Molly Hubbard, the treasurer, prepared the following budget for the Year 2 luncheon. The budget for the luncheon was based on the following expectations: The meal cost per person was expected to be $12.40. The cost driver for meals was attendance, which was expected to be 1,460 individuals. Postage was based on $0.56 per invitation and 3,300 invitations were expected to be mailed. The cost driver for postage was number of invitations mailed. The facility charge is $1,600 for a room that will accommodate up to 1,600 people; the charge for one to hold more than 1,600 people is $2,100. A fixed amount was designated for printing, decorations, the speaker’s gift, and publicity. FINCH MANAGEMENT ASSOCIATION…
Hugo Medical Supply has applied for a loan. Pacific Commerce Bank has requested a budgeted balance sheet as of April 30, and a combined cash budget for April. As Hugo Medical Supply's controller, you have assembled the following information: a. March 31 equipment balance, $52,600; accumulated depreciation, $41,300. b. April capital expenditures of $ 42,400 budgeted for cash purchase of equipment. c. April depreciation expense, $700. d. Cost of goods sold, 60%of sales. e. Other April operating expenses, including income tax, total $14,200, 35% of which will be paid in cash and the remainder accrued at April 30. f. March 31 owners' equity, $92,600. g. March 31 cash balance, $40,300. h. April budgeted sales, $90,000, 70% of which is for cash. Of the remaining 30%, half will be collected in April and half in May. i. April cash collections on March sales, $29,100. j. April cash payments of March 31 liabilities incurred for March…
Forest Trails is preparing their budgeted financial statements for the coming period, and has accumulated the following data: Beginning-of-period balances: Cash: $13,500 Accounts Receivable: $54,000 Raw Materials Inventory: $16,000 Work in Process Inventory: $60,000 Finished Goods Inventory: $24,000 Equipment (historical value): $480,000 Accumulated Depreciation: $288,000 Accounts Payable: $27,000 Estimates for end-of-period balances: Accounts Receivable: $67,500 Raw Materials Inventory: $10,000 Work in Process Inventory: $50,000 Finished Goods Inventory: $29,000 Accumulated Depreciation: $296,000 Accounts Payable: $18,000 Budgeted activity levels for the period: Sales: 3,125 units, at an average sales price of $80/unit Purchases of Direct Materials: $44,800 Direct Labor Wages: $75,000 Manufacturing Overhead: $25,000 Selling and Administrative Expenses: $42,000 All sales are on account. Only raw materials are purchased on account. The company has no debt aside from current liabilities.…