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 ($450.00q)	$ 157,500
Expenses:
Wages and salaries ($11,200 + $124.00q)	54,600
Supplies ($5.00q)	1,750
Equipment rental ($2,200 + $22.00q)	9,900
Insurance ($3,900)	3,900
Miscellaneous ($510 + $1.44q)	1,014
Total expense	71,164
Net operating income	$ 86,336

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

Required:

Prepare a flexible budget for May.

Puget Sound Divers
Flexible Budget
For the Month Ended May 31
Budgeted diving-hours	350
Revenue	$157,500
Expenses:
Wages and salaries
Supplies
Equipment rental
Insurance
Miscellaneous
Total expense	0
Net operating income	$157,500