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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		$	87		$	0
Tour guide wages	$	0		$	0		$	105
Vehicle expenses	$	3,500		$	9		$	55
Administrative expenses	$	1,600		$	1		$	0

In July, the company budgeted for 355 guests and 125 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		350
Actual jeeps		127
Revenue	$	30,390
Expenses:
Tour guide wages		13,085
Vehicle expenses		13,755
Administrative expenses		1,950
Total expense		28,790
Net operating income	$	1,600

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 350 355 Jeeps 127 125 Revenue Expenses: Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income

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