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)		350
Revenue ($470.00q)	$	164,500
Expenses:
Wages and salaries ($11,700 + $124.00q)		55,100
Supplies ($5.00q)		1,750
Equipment rental ($2,300 + $23.00q)		10,350
Insurance ($4,000)		4,000
Miscellaneous ($510 + $1.50q)		1,035
Total expense		72,235
Net operating income	$	92,265

During May, the companys actual activity was 340 diving-hours.

Required:

Prepare a flexible budget for May. (Round your answers to the 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 Net operating income 69 $ 0 0