a. Metro Jeep Tours operates jeep tours in Queenstown. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: Revenue Tour guide wages Vehicle expenses Administrative expenses Fixed element per month ($) 0 0 3,700 1,600 Variable element per guest ($) 100 0 13 2 Variable element per jeep ($) 0 164 49 0 In May, the company budgeted for 407 guests and 113 jeeps. The company's income statement showing the actual results for the month appears below: 402 112 39,740 Metro Jeep Tours Income Statement For the Month Ended May 31 Actual guests Actual jeeps Revenue $ Expenses: Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income $ 18,178 14,604 2,374 35, 156 4,584 Required (show your calculations): . Prepare a flexible budget performance report showing both the company's activity variances and revenue and spending variances for May. Label each variance as favourable (F) or unfavourable (U). (12 marks) ii. With reference to (i), comment on the potential reasons for the "revenue variance" and the "vehicle expenses variance. (4 marks)