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
During May, the company's activity was actually 105 diving-hours. Prepare a flexible budget for that level of activity. (Input all amounts as positive values. Omit the "$" sign in your response.)
Puget Sound Divers
Flexible Budget
For the Month Ended May 31
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
Required:
During May, the company's activity was actually 105 diving-hours. Prepare a flexible budget for that level of activity. (Input all amounts as positive values. Omit the "$" sign in your response.)
Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Exercise 10-2 Prepare a Report Showing Activity Variances [LO2]
Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company's planning budget for July appears below:
Flight Café
Planning Budget
For the Month Ended July 31
Budgeted meals (q)
18,000
Revenue ($4.50q)
$
81,000
Expenses:
Raw materials ($2.40q)
43,200
Wages and salaries ($5,200 + $0.30q)
10,600
Utilities ($2,400 + $0.05q)
3,300
Facility rent ($4,300)
4,300
Insurance ($2,300)
2,300
Miscellaneous ($680 + $0.10q)
2,480
Total expense
66,180
Net operating income
$
14,820
In July, 17,800 meals were actually served. The company's flexible budget for this level of activity appears below:
Flight Café
Flexible Budget
For the Month Ended July 31
Budgeted meals (q)
17,800
Revenue ($4.50q)
$
80,100
Expenses:
Raw materials ($2.40q)
42,720
Wages and salaries ($5,200 + $0.30q)
10,540
Utilities ($2,400 + $0.05q)
3,290
Facility rent ($4,300)
4,300
Insurance ($2,300)
2,300
Miscellaneous ($680 + $0.10q)
2,460
Total expense
65,610
Net operating income
$
14,490
Required:
Prepare a report showing the company's activity variances for July. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
Flight Café
Activity Variances
For the Month Ended July 31
