Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] 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) 250 Revenue ($420.00q) $ 105,000 Expenses: Wages and salaries ($11,100 + $122.00q) 41,600 Supplies ($5.00q) 1,250 Equipment rental ($2,200 + $26.00q) 8,700 Insurance ($3,900) 3,900 Miscellaneous ($510 + $1.44q) 870 Total expense 56,320 Net operating income $ 48,680 During May, the companys actual activity was 240 diving-hours.

Required: Prepare a flexible budget for May.