Gator divers is a company that provides diving services

Reference no: EM13600348

Gator Divers is a company that provides diving services such as underwater ship repairs to clients in Tampa Bay area. The company's planning budget for March appears below:

Gator Divers
Planning Budget
For the Month Ended March 31
Budgeted diving-hours (q) 200
Revenue ($380.00q) $76,000

Expenses:
Wages and salaries ($12,000 + $130.00q) 38,000
Supplies ($5.00q) 1,000
Equipment rental ($2,500 + $26.00q) 7,700
Insurance ($4,200) 4,200
Miscellaneous ($540 + 1.50q) 840
Total expense 51,740
Net operating income $24,260

Required: During March, the company's activity was actually 190 diving-hours. Prepare a flexible budget for that level of activity.

Reference no: EM13600348

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