Otomo 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		$	86		$	0
Tour guide wages	$	0		$	0		$	104
Vehicle expenses	$	3,400		$	8		$	54
Administrative expenses	$	1,500		$	1		$	0

In July, the company budgeted for 354 guests and 124 jeeps. The company's income statement showing the actual results for the month appears below:

Otomo Jeep Tours
Income Statement
For the Month Ended July 31
Actual guests		348
Actual jeeps		126
Revenue	$	29,868
Expenses:
Tour guide wages		12,854
Vehicle expenses		13,108
Administrative expenses		1,848
Total expense		27,810
Net operating income	$	2,058

Required:

Prepare a report showing the company's activity variances for July. 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.)

Otomo Jeep Tours
Activity Variances
For the Month Ended July 31
	Flexible Budget	Planning Budget	Activity Variances
Guests	348	354
Jeeps	126	124
Revenue
Expenses:
Tour guide wages
Vehicle expenses
Administrative expenses
Total expense
Net operating income