Gator Divers is a company that provides divers services such as underwater ship repairs to clients in the Tampa Bay area.  The company’s planning budget for March appears below.

Gator Divers

Planning Budget

For the Month Ended March 31

 

Budgeted diving-hours (q) . . . . . . . . . . . . . . . . . . . . .                         200

Revenue ($380.00q) . . . . . . . . . . . . . . . . . . . . . . . . . .                        $76,000

Expenses:

Wages and salaries ($12,000 + $130.00q) . . . . . .                   38,000

Supplies ($5.00q) . . . . . . . . . . . . . . . . . . . . . . . . . .                1,000

Equipment rental ($2,500 + $26.00q) . . . . . . . . . .                  7,700

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

Miscellaneous ($540 + $1.50q) . . . . . . . . . . . . . . .                 840

Total expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        51,740

Net operating income . . . . . . . . . . . . . . . . . . . . . . . . .                         $24,260

 

Required:

During March, the company’s activity was actually 190 diving-hours. Prepare a flexible budget for that level of activity. unlikely that all costs are strictly variable. Some are likely to be fixed or mixed.