Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clientsin the Puget Sound area. The company’s planning budget for May appears below:Puget Sound DiversPlanning BudgetFor the Month Ended May 31Budgeted diving-hours (q) ........................................... 100Revenue ($365.00q) .................................................... $36,500Expenses:Wages and salaries ($8,000 $125.00q) ............... 20,500Supplies ($3.00q) ..................................................... 300Equipment rental ($1,800 $32.00q) ..................... 5,000Insurance ($3,400) ................................................... 3,400Miscellaneous ($630 $1.80q) ............................... 810Total expense .............................................................. 30,010Net operating income .................................................. $ 6,490Required:During May, the company’s activity was actually 105 diving-hours. Prepare a flexible budget for that levelof activity.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Budgeted diving-hours (q) ........................................... 100
Revenue ($365.00q) .................................................... $36,500
Expenses:
Wages and salaries ($8,000 $125.00q) ............... 20,500
Supplies ($3.00q) ..................................................... 300
Equipment rental ($1,800 $32.00q) ..................... 5,000
Insurance ($3,400) ................................................... 3,400
Miscellaneous ($630 $1.80q) ............................... 810
Total expense .............................................................. 30,010
Net operating income .................................................. $ 6,490
Required:
During May, the company’s activity was actually 105 diving-hours. Prepare a flexible budget for that level
of activity.

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