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) 350 revenue ($450.00q) $ 157,500 expenses: wages and salaries ($11,500 + $124.00q) 54,900 supplies ($4.00q) 1,400 equipment rental ($2,500 + $23.00q) 10,550 insurance ($3,800) 3,800 miscellaneous ($510 + $1.46q) 1,021 total expense 71,671 net operating income $ 85,829 during may, the company’s actual activity was 340 diving-hours. required: prepare a flexible budget for may

Flexible Budget for May                    Value                          Percentage of sales

Sales Revenue 340 hours           450 X 340 = $153,000

Wages and salaries  $11,500 + ($124 X 340) = $53,660               35.07%

Supplies                                          $4 X 340  = $1,360                    0.88%

Equipment rental      $2,500 + ($23 X 340)   = $10,320                6.745%

Insurance                                          $3,800   =  $3,800                  2.48%

Miscellaneous              $510 + (1.46 X 340)    = $1,006.4                 0.657%

Total Expense                                                  = $70,146.4                45.85%                                        

Net Operating Income                                    = $82,853.6              54.153        

In a flexible budget all items are shown as a percentage of total revenue (Sales). Further the budget is adjusted based on sales level, where all variable expenses are proportionate to sales.

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hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"