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)		350
Revenue ($410.00q)	$	143,500
Expenses:
Wages and salaries ($11,200 + $128.00q)		56,000
Supplies ($4.00q)		1,400
Equipment rental ($2,100 + $22.00q)		9,800
Insurance ($4,100)		4,100
Miscellaneous ($520 + $1.48q)		1,038
Total expense		72,338
Net operating income	$	71,162

During May, the companys actual activity was 340 diving-hours.

Required:

Prepare a flexible budget for May