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 .6490

Required:
During May, the company's activity was actually 105 diving-hours. Prepare a flexible budget for that level of activity.