Joe
Not sure if we are talking about the same foam this one is almost like a medium to soft plastic. I cut these letters with a 1/8" (3.175mm) upcut bit in one pass at 1/2" (12.7mm) deep at 20"/min. It can be cut faster but with the small bit I was not taking any chances due to thge last second rushing. My router was flat out at ~25,000 rpm.
edit: The reason for plunging so deep in order to make one pass is that I save time if any pass marks have to be sanded off the letters.
Jason