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During May the company’s activity was actually 105 diving-hours. What would a flexible budget look like for this level of activity
The planning budget for May (Ending May 31)
Budgeted diving – hours (q) 100
Revenue ($365.00q) $36,000
Expenses:
Wages and Salaries ($8,000+ $125.00q) 20,500
Supplies($3.00q) 300
Equipment rental ($1,800+$32.00q) 5,000
Insurance($3,400) 3,400
Miscellaneous($630 +$1.80q) 810
Total Expense 30,010
Net Operating Income $6,490
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