Puget Sound Divers is a company that provides diving service

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 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:

Required: During May, the company\'s activity was actually 240 diving-hours. Complete the following flexible budget for that level of activity. (Round your answers to nearest whole dollar.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Equipment rental Insurance Miscellaneous Total expense Net

Solution

Answer

puget sound divers flexible budget

for the month ended may 31

10

revenue ( 450 * 240 )	108000
expenses
wages and salaries ( 11800 + 124 * 240 )	41560
supplies ( 4 * 240 )	960
equipment rental ( 2300 + 21 * 240 )	7340
insurance	3900
miscellaneous ( 510 + 1.44 * 240 )	855.60
total expense	54615.60
net operating income	53384.40