Desert ATV (All Terrain Vehicle) Tours operates ATV tours in the heart of the Arizona desert. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and ATV's. One vehicle used in one tour on one day counts as an ATV. Each ATV has one tour guide. The company uses the following data in its budgeting:

	Fixed element per month			Variable element per guest			Variable element per ATV
Revenue	$	0		$	117			$	0
Tour guide wages	$	0		$	0			$	171
Vehicle expenses	$	4,600		$	5			$	60
Administrative expenses	$	1,100		$	4			$	0

In May, the company budgeted for 447 guests and 152 ATV's. The company's income statement showing the actual results for the month appears below:

Desert ATV Tours
Income Statement
For the Month Ended May 31
Actual guests		462
Actual ATV's		147
Revenue	$	53,854
Expenses:
Tour guide wages		25,157
Vehicle expenses		15,640
Administrative expenses		2,888
Total expense		43,685
Net operating income	$	10,169

Required:

Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).