1. Cuban Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $0.70 0.50 0.40 Fixed overhead costs per month are: Supervision $4,000, Depreciation $3,000, and Property Taxes $800. The company believes it will normally operate in a range of 7,0009,000 direct labor hours per month. Instructions Prepare a monthly flexible manufacturing overhead budget for 2014 for the expected range of activity, using increments of 1,000 direct labor hours. 7,000 L 8,000 9,000 2. Moss Corp. reported the following items for 2013: Controllable fixed costs $ 77,000 Contribution margin 122,000 Interest expense 20.000 Variable costs 80,000 Total assets $925,000 Compute the controllable margin for 2013