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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
Advertising
5400
4300
Billing
3200
2700
Property taxes
1100
1000
Material and supplies
1500
1400
Supervisory salaries
8500
9500
Insurance
4100
3600
Wages
3100
Gas and oil
Equipment depreciation
1600
1200
Prepare a responsibility report for the first quarter of 2017 for the Home Internet Service segment.
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