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 31Budgeted diving-hours (q)Revenue ($365.00q)Expenses:Wages and salaries ($8,000 + $125.00q)Supplies ($3.00q)Equipment rental ($1,800 + $32.00g)Insurance ($3,400)Miscellaneous ($630+ $1.80q)Total expenseNet operating incomePuget Sound DiversFlexible BudgetFor the Month Ended May 31RevenueExpenses:During May, the company's actual activity was 105 diving-hours.Required:Prepare a flexible budget for May.100$ 36,500Wages and salariesSuppliesEquipment rentalInsuranceMiscellaneous20,5003005,0003,40081030,010$ 6,490

Net Operating Income is the difference between Revenue and total expenses. Total expenses include…

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 ($365.00q) Expenses: Wages and salaries ($8,000 + $125.00g) Supplies ($3.00q) Equipment rental ($1,800 + $32.00q) Insurance ($3,400) Miscellaneous ($630+ $1.80g) Total expense Net operating income Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: 100 $ 36,500 Wages and salaries Supplies Equipment rental Insurance Miscellaneous 20,500 300 During May, the company's actual activity was 105 diving-hours. Required: Prepare a flexible budget for May. 5,000 3,400 810 30,010 $ 6,490

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 ($365.00q) Expenses: Wages and salaries ($8,000 + $125.00g) Supplies ($3.00q) Equipment rental ($1,800 + $32.00q) Insurance ($3,400) Miscellaneous ($630+ $1.80g) Total expense Net operating income Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: 100 $ 36,500 Wages and salaries Supplies Equipment rental Insurance Miscellaneous 20,500 300 During May, the company's actual activity was 105 diving-hours. Required: Prepare a flexible budget for May. 5,000 3,400 810 30,010 $ 6,490

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 20E

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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