Gator Divers is a company that provides diving services The Company's planning budget for March reports the following.

Budgeted diving-hours (q) 250

Revenue ($470q) $117,500

Expenses:

Wages & salaries ($11,300 + $126q) $42,800

Supplies ($4q) $1,000

Equipment rental ($2,200 + $25q) $8,450

Insurance ($4,200) $4,200

Misc. ($550 + $1.46q) $915

Total expense $57,365

Net operating income $60,135

During March, the company's activity was actually 240 diving-hours.

6. In the flexible budget, what is the amount of wages & salaries?

1. $42,800
2. $11,300
3. $41,540
4. $30,240

7. In the flexible budget, what is the amount of supplies?

1. $960
2. $1,000
3. $1,880
4. $1,960