Answer and Explanation:
The preparation of the report showing the company revenue and spending variance is shown below:
                                      Cryan Jeep Tours
                        Revenue and Spending Variances
                            For the Month Ended May 31
Particulars    Actual Results	Flexible Budget	Revenue & Spending Variances
Guests             507                          507
Jeeps              192                           192
Revenue        $82,854                   $104,949               $22,095 U    (A) 
                                                      (507 ×$207)
Expenses:    
Tour guide wages $32,357           $31,104                  $1,253 U
                                                     (192 × $162)
Vehicle expenses $20,140            $25,846                $5,706 F
                                          ($5,500 + 507 × $14 + 192 × $69)
Administrative expenses $7,388   $8,591                   $1,203 F
                                               ($2,000 + 507 × $13 )
Total expense   $59,885                $65,541                 $5,656 F   (B)
Net operating income $22,969      $39,408               $16,439 U  (A - B)
We simply deduct all expenses from the revenues so that the net operating income could come