Potomac Paddlesports operates kayak tours in the Potomac river at Washington D.C. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and kayaks. One kayak used in one tour on one day counts as a kayak trip. Each kayak trip has one guide. The company uses the following data in its budgeting: Fixed Element Variable Element Variable Element per Quarter per guest per kayak trip Revenue. $0 $250 $0 "Guide" Expenses..... $0 $0 $2,000 Kayak Expenses...... $0 $80 $20 "Maintenance" Expenses..... $25,000 $10 $25 [Hint: For example, kayak expense can be calculated as : $80* number of guests + $20 * number of kayak trips] In 1Q 2021, Potomac budgeted for 2,000 guests and 150 kayak trips. The company's income statement showing the actual results for the quarter appears below: Actual # of Guest......2,450 Actual # of Kayak Trips.. .160 Actual Revenue and Expenses : Revenue... $683,200 "Guide" Expenses.... $437,230 "Kayak Expenses.... $215,010 "Maintenance "Expenses...... $67,560 Net Operating Income... -$36,600 a. What is the activity_variance for "Guide" expenses? (2 points) Is it Favorable or Unfavorable (1 point)? b. What is the revenue variance? (2 points) Is it Favorable or Unfavorable (1 point) ? c. What is the spending variance for "Maintenance expense"? (2 Points) Is it Favorable or Unfavorable (1 point)? d. Do you think the activity variance for Guide expenses is a matter of concern for potomac? Can you comment on the spending variance for Maintenance expenses? (3 points)