Prepare a flexible budget for that level of activity

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Reference no: EM13962915

Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the 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: EM13962915

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