EXERCISE 10-1 Prepare a Flexible Budget [LO 10-1] 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 ($365.000) $36,500 Expenses: Wages and salaries ($8,000+ $125.00q)... 20,500 Supplies ($3.00m). 300 Equipment rental ($1,800 + $32.00q). 5,000 Insurance ($3,400). 3,400 Miscellaneous ($630 + $ 1.809) 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