Question 3 (6 points) A company operates jeep tours around Smoky Mountains. The company bases its budgets on two measures of activity, 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 Variable element Variable element month per guest per Jeep Revenue o 100 0 0 0 164 3,700 13 Tour guide wages Vehicle expenses Administrative expenses 49 2 0 1,600 In May, the company budgeted for 407 guests and 113 jeeps. The company's income statement shows the actual results for the month. Income Statement on May 31 Actual guests 402 Actual jeeps 112 Revenue $39,740 Expenses: Tour guide wages 18,178 Vehice expenses 14,604 Administrative expenses 2,374 Total expense 35,156 Net operating income $4,584 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)