Prepare a responsibility report for the first quarter

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Reference no: EM132318434

Question

UrLink Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, Lenny Kirkland, had divided the company into two segments: Home Internet Service and Business Internet Service. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments.

Lenny has asked you to help him performance reporting system that will allow him to measure each segment's performance in terms of its profitability. To that end, the following information has been collected on the Home Internet Service segment for the first quarter of 2017.

 

Budgeted

Actual

Service revenue

$24900

$26300

Allocated portion of:

 

 

Building depreciation

11500

11500

Advertising

5400

4300

Billing

3200

2700

Property taxes

1100

1000

Material and supplies

1500

1400

Supervisory salaries

8500

9500

Insurance

4100

3600

Wages

3100

3200

Gas and oil

2700

3200

Equipment depreciation

1600

1200

Prepare a responsibility report for the first quarter of 2017 for the Home Internet Service segment.

Reference no: EM132318434

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