Puget Sound Divers is a company that provides diving services such..

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 + $1.46q)1,021
Total expense72,371
Net operating income$ 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.)

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