EXERCISE 9–1 Prepare a Flexible Budget LO9–1

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) : 100

Revenue ($365.00q) : $36,500

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

During May, the company’s actual activity was 105 diving-hours.

Required: show all the work process

Using Exhibit 9–5 as your guide, prepare a flexible budget for May.

Each container is cut from the mould once the plastic has cooled and hardened. unit-level 2 patents are obtained for each new type of container mould. facility-level 3. plastic resins are used as the main direct material for the containers. product-level 4. a plant manager oversees the entire manufacturing operation. facility-level 5. the sales force incurs travel expenses to attend various trade shows throughout the country to market the containers. product-level 6. each container product line has a product line manager. product-level 7 the extrusion machine is calibrated for each batch of containers made. facility-level 8. each type of container has its own unique moulds. unit-level 9. routine maintenance is performed on the extrusion machines. facility-level 10. rent is paid for the building that houses the manufacturing processes. classify each activity as either unit-level, batch-level, product-level, or facility-level.