Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($460.00q) Expenses: Wages and salaries ($12,000 + $122.00q) Supplies ($4.00g) Equipment rental ($2,400 +$23.00) Insurance ($3,900) Miscellaneous ($520 + $1.44q) Total expense Net operating income 250 $ 115,000 42,500 1,000 8,150 3,900 880 56,430 $ 58,570 During May, the company's actual activity was 240 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Answer is complete but not entirely correct. Puget Sound Divers Flexible Budget For the Month Ended May 31 Actual diving-hours Revenue Expenses: 240 $ 110,400 Wages and salaries 41,460 Supplies 720 Equipment rental 7,780 Insurance 4,100x Miscellaneous 875X Total expense 54,935 Net operating income $ 55,465