Answer:
$50,094.8
Explanation:
Flexible Budget are budget prepared by taking the actual activity level achieved at standard cost/price. WHILE
q is taken as the actual level of activity which is 240 diving hours.
Puget Sound Divers
Flexible Budget For the Month Ended May 31
Revenue ($440.00 ×240) $105,600
Expenses:
Wages and salaries ($11,800 + $128.00×240) $42,520
Supplies ($3.00 ×240) $720
Equipment rental ($2,100 + $22.00 ×240) $7,380
Insurance ($4,000) $4,000
Miscellaneous ($530 + $1.48×240) $885.2
Total expense $55,505.2
Net operating income ($105,600- $55,505.2) $ 50,094.8
Net operating income =Revenue - Total expenses
