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)		400
Revenue ($440.00q)	$	176,000
Expenses:
Wages and salaries ($11,800 + $122.00q)		60,600
Supplies ($5.00q)		2,000
Equipment rental ($2,100 + $22.00q)		10,900
Insurance ($4,100)		4,100
Miscellaneous ($550 + $1.48q)		1,142
Total expense		78,742
Net operating income	$	97,258

During May, the companys actual activity was 390 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