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 ($400.00q) | $ 140,000 |
| Expenses: | |
| Wages and salaries ($11,800 + $128.00q) | 56,600 |
| Supplies ($4.00q) | 1,400 |
| Equipment rental ($2,100 + $21.00q) | 9,450 |
| Insurance ($3,900) | 3,900 |
| Miscellaneous ($510 + $1.46q) | 1,021 |
| Total expense | 72,371 |
| Net operating income | $ 67,629 |
During May, the company’s actual activity was 340 diving-hours.
Required:
Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)