Question - 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:
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Puget Sound Divers Planning Budget For the Month Ended May 31
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Budgeted diving-hours (q)
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400
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Revenue ($450 . 00q)
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$180,000
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Expenses:
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Wages and salaries ($11,800 + $126.00q)
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62,200
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Supplies ($3.00q)
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1,200
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Equipment rental ($2,500 + $23.00q)
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11,700
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Insurance ($4,000)
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4,000
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Miscellaneous ($540 + $1.48q)
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1,132
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Total expense
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80,232
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Net operating income
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$99,768
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During May, the company's actual activity was 390 diving-hours.
Required: Prepare a flexible budget for May.