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 company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($365.00g) 100 $36,500 Expenses Wages and salaries ($8,000 $125.00q) Supplies ($3.00q) Equipment rental ($1,800 +$32.00q) Insurance ($3,400) Miscellaneous ($630 + $1.80q) 20,500 300 5,000 3,400 810 Total expense 30,010 Net operating income $ 6,490 Required: During May, the company's activity was actually 105 diving-hours. Complete the following flexible budget for that level of activity 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