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Puget sound divers is a company that provides diving services

19/03/2021 Client: saad24vbs Deadline: 2 Day

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)

250

Revenue ($390.00q)

$

97,500

Expenses:

Wages and salaries ($11,900 + $122.00q)

42,400

Supplies ($4.00q)

1,000

Equipment rental ($2,300 + $23.00q)

8,050

Insurance ($4,200)

4,200

Miscellaneous ($520 + $1.46q)

885

Total expense

56,535

Net operating income

$

40,965

Required:

During May, the company’s activity was actually 240 diving-hours. Complete the following flexible budget for that level of activity.

2.

value: 10.00 points

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)

21,000

Revenue ($3.80q)

$

79,800

Expenses:

Raw materials ($2.20q)

46,200

Wages and salaries ($6,200 + $0.20q)

10,400

Utilities ($1,900 + $0.05q)

2,950

Facility rent ($3,100)

3,100

Insurance ($2,700)

2,700

Miscellaneous ($700 + $0.10q)

2,800

Total expense

68,150

Net operating income

$

11,650

In July, 22,000 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)

22,000

Revenue ($3.80q)

$

83,600

Expenses:

Raw materials ($2.20q)

48,400

Wages and salaries ($6,200 + $0.20q)

10,600

Utilities ($1,900 + $0.05q)

3,000

Facility rent ($3,100)

3,100

Insurance ($2,700)

2,700

Miscellaneous ($700 + $0.10q)

2,900

Total expense

70,700

Net operating income

$

12,900

Required:

1.

Compute the company’s activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

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