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 31 100 Budgeted diving-hours (9) Revenue ($365.009) $36,500 Expenses: 20,500 300 Wages and salaries ($8,000+ $125.00) Supplies ($3.000) Equipment rental ($1,800 + $32.00) 5,000 3,400 Insurance ($3,400) Miscellaneous ($630+ $1.809) 810 Total expense 30,010 Net operating income $ 6,490 During May, the company's actual activity was 105 diving-hours. Required: Using Exhibit 9-5 as your guide, prepare a flexible budget for May. EXHIBIT 9-5 Flexible Budget Based on Actual Activity Rick's Hairstyling Flexible Budget For the Month Ended March 31 1,100 Actual client-visits (9) Revenue ($180.00q) $198,000 Expenses: Wages and salaries ($65,000 + $37.009) 105,700 1,650 4,510 Hairstyling supplies ($1.509) Client gratuities ($4.109) Electricity ($1,500 + $0.109) Rent ($28,500) Liability insurance ($2,800) 1,610 28,500 2,800 Employee health insurance ($21,300) 21,300 Miscellaneous ($1,200 + $0.20q) 1,420 Total expense 167,490 Net operating income $ 30,510