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:
Puget Sound Divers Planning Budget For the Month Ended May 31
Budgeted diving-hours (q) - 250
Revenue ($440.00q) - $ 110,000
Expenses:
Wages and salaries ($11,500 + $120.00q) - 41,500
Supplies ($6.00q) - 1,500
Equipment rental ($2,300 + $21 .00q) - 7,550
Insurance ($4,000) - 4,000
Miscellaneous ($550 + $1 .48q) - 920
Total expense - 55,470
Net operating income - $ 54,530
Required: During May, the company's activity was actually 240 diving-hours. Complete the flexible budget for that level of activity.