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Drey Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost

Drey Jeep Tours operates jeep tours in the heart of the Colorado Rockies. 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:

Fixed element per month Variable element per guest Variable element per jeep
Revenue $0 $135 $0
Tour guide wages $0 $0 $176
Vehicle expenses $4,000 $13 $77
Administrative expenses $2,500 $4 $0

In July, the company budgeted for 399 guests and 127 jeeps. The actual activity for the month was 419 guests and 123 jeeps. Required: Prepare a report showing the company's activity variances for July. Label each variance as favorable (F) or unfavorable (U)

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