2. The flexible budget report includes all of the following sections except cost data for variable and fixed costs. b. a. data for excess of contribution margin over controllable fixed costs (controllable margin). production data for a selected activity index. d. C. All of the choices are included in a flexible budget report. At 40,000 direct labor hours, the flexible budget for indirect labor is $160,000. If $172,000 3. of indirect labor costs are incurred at 44,000 direct labor hours, the flexible budget report should show the following difference for indirect labor. $12,000 favorable. b. $4,000 unfavorable. $4,000 favorable. a. C. d. $12,000 unfavorable. Controllable fixed costs are deducted from the contribution margin to arrive at income from operations. net income. 4. a. b. controllable margin. d. realized income. C. The numerator in computing return on investment is controllable margin. a. average operating assets. contribution margin. b. C. d. net assets. 5