Pronto plumbing company is a newly formed company

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Pronto Plumbing Company is a newly formed company specializing in plumbing services for home and business. The owner, Paul Pronto, had divided the company into two segments: Home Plumbing Services and Business Plumbing Services. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments. Paul has asked you to help him create a 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 Plumbing Services segment for the first quarter of 2008.

  • Budgeted Actual
    • Service revenue $25,000 $26,000
    • Allocated portion of:
    • Building depreciation 11,000 11,000
    • Advertising 5,000 4,200
    • Billing 3,500 3,000
    • Property taxes 1,200 1,000
    • Material and supplies 1,500 1,200
    • Supervisory salaries 9,000 9,400
    • Insurance 4,000 3,500
    • Wages 3,000 3,300
    • Gas and oil 2,700 3,400
    • Equipment depreciation 1,600 1,300

Prepare a responsibility report for the first quarter of 2008 for the Home Plumbing Services segment.

  • PRONTO PLUMBING COMPANY
    • Home Plumbing Services Segment
    • Responsibility Report
  • For the Quarter Ended March 31, 2008
    • Difference
    • Favorable F

Reference no: EM13576079

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