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 ($380.00q) $ 76,000

Expenses:

Wages and salaries ($11,000 + $124.00q) 35,800

Supplies ($6.00q) 1,200

Equipment rental ($2,200 + $26.00q) 7,400

Insurance ($3,900) 3,900

Miscellaneous ($520 + $1.42q) 804

Total expense 49,104

Net operating income $ 26,896

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

Required:

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