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)

300

Revenue ($460.00q)

$

138,000

Expenses:

Wages and salaries ($11,800 + $128.00q)

50,200

Supplies ($6.00q)

1,800

Equipment rental ($2,500 + $21.00q)

8,800

Insurance ($3,900)

3,900

Miscellaneous ($530 + $1.44q)

962

Total expense

65,662

Net operating income

$

72,338

Required:

During May, the companys activity was actually 290 diving-hours. Complete the following flexible budget for that level of activity. (Round your answers to nearest whole dollar.)

Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Revenue
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense
Net operating income