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Puget Sound Divers is a company that provides diving services such as underwater ship repairs to...

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) 350 Revenue ($460.00q) $ 161,000 Expenses: Wages and salaries ($11,700 + $124.00q) 55,100 Supplies ($3.00q) 1,050 Equipment rental ($2,300 + $23.00q) 10,350 Insurance ($4,000) 4,000 Miscellaneous ($530 + $1.46q) 1,041 Total expense 71,541 Net operating income $ 89,459 During May, the company’s actual activity was 340 diving-hours.

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