ControlExercise $9-1($Algo$)$ Prepare a Flexible Budget $[$LO$9-1]$

Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. 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 $($$$390\mathrm{.}00$q$)$ $ $97,500$

Expenses:

Wages and salaries $($$$11,300+$ $$124\mathrm{.}00$q$)42,300$

Supplies $($$$4\mathrm{.}00$q$)1,000$

Equipment rental $($$$2,100+$ $$24\mathrm{.}00$q$)8,100$

Insurance $($$$4,200)4,200$

Miscellaneous $($$$500+$ $$1\mathrm{.}46$q$)865$

Total expenses $56,465$

Net operating income $ $41,035$

During May, the company$$s actual activity was $240$ diving$-$hours.

Required:

Prepare a flexible budget for May.