Exercise 9-1 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)		300
Revenue ($460.00q)	$	138,000
Expenses:
Wages and salaries ($11,000 + $122.00q)		47,600
Supplies ($4.00q)		1,200
Equipment rental ($2,000 + $25.00q)		9,500
Insurance ($4,000)		4,000
Miscellaneous ($510 + $1.50q)		960
Total expense		63,260
Net operating income	$	74,740

Required:

During May, the companys activity was actually 290 diving-hours. Complete the following flexible budget for that level of activity.