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)	300
Revenue ($420.00q)	$ 126,000
Expenses:
Wages and salaries ($11,400 + $124.00q)	48,600
Supplies ($4.00q)	1,200
Equipment rental ($2,000 + $23.00q)	8,900
Insurance ($3,900)	3,900
Miscellaneous ($520 + $1.42q)	946
Total expense	63,546
Net operating income	$ 62,454

During May, the companys actual activity was 290 diving-hours.

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