Morles 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 a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: tour on one day counts as Fixed element Variable clement Variable per month element per jeep per guest S 100 Revenue Tour guide wages Vehicle expenses Administrative expenses S 164 S 49 $ 3,700 1,600 S 13 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: Morles Jeep Tours Income Statement For the Month Ended May 31 402 Actual guests Actual jeeps Revenue 112 S 39.740 Expenses: 18,178 14,604 2,374 Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income 35,156 S 4,584 Required: Prepare a flexible budget performance report showing both the company's activity variances and revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U) Page 5 of 15