Reef Slithering Riverboat Tours is a tour boat company that takes guests on a tour of the Mississippi river. The company bases its budgets on two measures of activity (i.e., cost drivers), guests and riverboats. Each time a riverboat is used in a tour it counts as one riverboat for budgeting purposes. Each riverboat has one tour guide. The company uses the following data in its budgeting:

	Fixed element per month	Variable element per guest	Variable element per riverboat	Actual Total for August
Revenue	$ 0	$ 27	$ 0	$ 19,200
Tour guide wages	$ 0	$ 0	$ 201	$ 4,100
Vehicle expenses	$ 9,100	$ 3	$ 42	$ 10,500
Administrative expenses	$ 4,100	$ 0	$ 0	$ 4,200

During August, the company budgeted for 22 riverboats and 785 guests. The actual activity for August was 19 riverboats 710 guests. Required: Prepare a planning budget, a flexible budget, and a performance report showing the companys activity and revenue and spending variances for August. On the performance report indicate in each case whether the variance is favorable (F) or unfavorable (U).