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)		250
Revenue ($460.00q)	$	115,000
Expenses:
Wages and salaries ($11,200 + $128.00q)		43,200
Supplies ($5.00q)		1,250
Equipment rental ($2,100 + $21.00q)		7,350
Insurance ($4,000)		4,000
Miscellaneous ($530 + $1.44q)		890
Total expense		56,690
Net operating income	$	58,310

During May, the companys actual activity was 240 diving-hours.

Required:

Prepare a flexible budget for May.

During May, the companys actual activity was 240 diving-hours.

Required:

Prepare a flexible budget for May.