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)400Revenue ($460.00q)$ 184,000Expenses: Wages and salaries ($11,200 + $128.00q)62,400Supplies ($5.00q)2,000Equipment rental ($2,300 + $21.00q)10,700Insurance ($4,100)4,100Miscellaneous ($520 + $1.50q)1,120Total expense80,320Net operating income$ 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.)

A flexible budget is one that can be altered in response to a company's activity or volume levels. A…

Answered: Puget Sound Divers is a company that…

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

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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)	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.)

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