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 ($380.00q)	$	133,000
Expenses:
Wages and salaries ($11,200 + $124.00q)		54,600
Supplies ($4.00q)		1,400
Equipment rental ($2,200 + $25.00q)		10,950
Insurance ($4,100)		4,100
Miscellaneous ($530 + $1.44q)		1,034
Total expense		72,084
Net operating income	$	60,916

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

Required:

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

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