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Question - 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 ($390.00q) $97,500Expenses: Wages and salaries ($11,700 + $128.00q) 43,700 Supplies ($3.00q) 750 Equipment rental ($2,100 + $20.00q) 7,100 Insurance ($4,000) 4,000 Miscellaneous ($530 + $1.48q) 900 Total expense 56,450 Net operating income $41,050
During May, the company's actual activity was 240 diving-hours.
Prepare flexible budget for May.
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