Prepare a Flexible Budget

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 ($ 480.00q)	$ 192,000
Expenses:
Wages and salaries ($ 11,200 + $122.00 q) .	60,000
Supplies ($ 5.00 q) .	2,000
Equipment rental ($2,100 + $ 21.00 q) .	10,500
Insurance ($ 4,000) ..	4,000
Miscellaneous ($ 550 + $ 1.44 q ) ..	1,126
Total expense .	77,626
Net operating income	$ 114,374

During May, the companys actual activity was 390 diving-hours.

Required:

Prepare a flexible a budget for May.