Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companyĆ¢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 ($11,900 + $128.00q) 43,900
Supplies ($5.00q) 1,250
Equipment rental ($2,400 + $23.00q) 8,150
Insurance ($3,900) 3,900
Miscellaneous ($510 + $1.50q) 885
Total expense 58,085
Net operating income $51,915
During May, the companyĆ¢s actual activity was 240 diving-hours. Write down its flexible budget for that level of activity.
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