contestada

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) 250
Revenue ($440.00q) $ 110,000
Expenses:
Wages and salaries ($11,800 + $128.00q) 43,800
Supplies ($3.00q) 750
Equipment rental ($2,100 + $22.00q) 7,600
Insurance ($4,000) 4,000
Miscellaneous ($530 + $1.48q) 900
Total expense 57,050
Net operating income $ 52,950


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.)

Respuesta :

Answer:

Explanation:

Calculation of items needed for construction of budget:

During May, the company’s activity was actually 240 diving-hours. So all items should be calculated with 240 diving-hours instead of 250.

Revenue = Revenue per diving hour* Diving hours = 440*240 = $105,600

Wages and salaries = $11,800+$128*240 = $42,520

Supplies = $3*240 = $720

Equipment rental = $2100 + $22*240 = $7380

Miscellaneous = $530 + $1.48*240 = $885

Flexible budget

For the month ended May 31

Revenue 105,600

Less: Expenses

Wages and salaries (42,520)

Supplies (720)

Equipment rental (7380)

Miscellaneous (885)

Insurance (4000)

Total expenses 55,505

Net income 50,095

Otras preguntas