The correct final answers are provided below, please show your work on how to get the answers. Thanks!

10. $18,080

11. $5,780 F

12. No, $428 F

Use the following information to answer questions 10 through 12. City Flight offers flying lessons at the Iowa City Airport. The owner prepared the following report about the month of November 2012 Planning Bud Variance Actual-Plan Actual 180 $45,000 14400 30,600 300 Lessons 214 34 F Revenue Variable cost (fuel) Contribution margin Fixed cost (wages and facility rent) Operating income S51,360 16,692 34,668 18.350 S6,360 F 2.292 U 4,068 F The owner is pleased that the overall operating income is higher than planned, but quite concerned that actual variable cost exceeded the budgeted amount by over 15%. She has asked you to review the report. 10. Compute the amount of profit that will appear on the flexible budget for November 2012. 11. Compute the amount by which profit changed simply due to the change in activity level (in other words, compute the total activity variance). Use the standard "F" or "U" notation to indicate the direction of profit change. 12. Is the owner correct in believing that variable costs are poorly controlled? Support your answer by computing the variable cost spending variance