(10 marks) FFF Ltd operates 4X4 tours in the heart of the Alps. The company bases its budgets on two measures of activity (l.e., cost drivers), namely guests and 4X4s. One vehicle used in one tour on one day counts as a 4X4. Each 4X4 has one tour guide. The company uses the following data in its budgeting: Revenue Tour guide wages Vehicle expenses Administrative expenses Variable Fixed element per month Variable element element per per guest jeep $ 0 $ 267 $ 0 $ 0 $ 0 $ 156 $ 6,100 $ 20 $ $ 2,600 $ 19 $ 75 0 In May, the company budgeted for 522 guests and 227 4X4s. The company's income statement showing the actual results for the month appears below: FFF Ltd. Income Statement For the Month Ended May 31 Actual guests Actual 4X48 Revenue Expenses: Tour guide wages Vehicle expenses Total expense Net operating income 537 222 $112,854 37,157 23,140 Administrative expenses 10,388 70,685 $ 42,169 Required: Prepare a report showing the company's flexible budget variances for May. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) FFF Ltd. Flexible Budget Performance Report For the Month Ended May 31 Guests 4X4s Revenue Expenses: Tour guide wages Vehicle expenses Administrative expenses Total expense Actual Results Flexible Budget 537 537 222 222 Flexible Budget Variance