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) 400 Revenue ($390.00g) Expenses: Wages and salaries ($11,800 +$128.00q) Supplies ($3.00g) Equipment rental ($2,200 + $26.00g) Insurance ($4,000) Miscellaneous ($520 + $1.44g) Total expense Net operating income $ 156,000 63,000 1,200 12,600 4,000 1,096 81,896 $ 74,104 During May, the company's actual activity was 390 diving-hours.