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)		200
Revenue ($440.00q)	$	88,000
Expenses:
Wages and salaries ($11,800 + $124.00q)		36,600
Supplies ($4.00q)		800
Equipment rental ($2,200 + $25.00q)		7,200
Insurance ($4,100)		4,100
Miscellaneous ($510 + $1.42q)		794
Total expense		49,494
Net operating income	$	38,506

During May, the companys actual activity was 190 diving-hours.

Required:

Prepare a flexible budget for May. (Round your answers to the nearest whole number.)