Exercise 8-1 Prepare a Flexible Budget [LO8-1]

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:

Puget Sound Divers Planning Budget For the Month Ended May 31
Budgeted diving-hours (q)		300
Revenue ($420.00q)	$	126,000
Expenses:
Wages and salaries ($11,400 + $122.00q)		48,000
Supplies ($3.00q)		900
Equipment rental ($2,400 + $22.00q)		9,000
Insurance ($4,100)		4,100
Miscellaneous ($550 + $1.50q)		1,000
Total expense		63,000
Net operating income	$	63,000

Required:

During May, the companys activity was actually 290 diving-hours. Complete the following flexible budget for that level of activity. (Round your answers to nearest whole dollar.)

Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Revenue
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense	0
Net operating income	$0