1. Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companys planning budget for May appears below:

During May, the companys actual activity was 340 diving-hours.

Required:

Prepare a flexible budget for May. (Round your answers to the nearest whole number.)

Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (9) 350 $157,500 Revenue ($450.009) Expenses : Wages and salaries ($11,100 + $126.909) Supplies ($6.009) Equipment rental ($2,300 + $ 24.009) Insurance ($4,100) Miscellaneous ($520 + $1.489) Total expense Net operating income 55,200 2,100 10,700 4,100 1,038 73,138 $ 84,362 Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income 0 $ 0