E11-25 Pronto Plumbing Company is a newly formed company that specializes in plumbing services for home and (SO 2, 3) business. The owner, Paul Pronto, had divided the company into two segments: home plumbing services and business Prepare and discuss a plumbing services. Each segment is run by its own supervisor, while both segments share basic selling and administrative responsibility report. duties. 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. The following information has been collected on the home plumbing services segment for the first quarter of 2016 Budget S30,000 Actual $31,500 Service revenue Allocated portion of costs 1,000 4,200 3,000 1,000 1,300 10,500 3,300 4,200 3,400 1,300 Building depreciation 11,000 5,000 3,500 1,200 1,500 10,000 4,000 4,000 2,700 1,600 Advertising Billing Property taxes Materials and supplies Supervisory salaries Insurance Wages Gas and oil Equipment depreciation Instructions (a) Prepare a responsibility report for the first quarter of 2016 for the home plumbing services segment (b) Write a memo to Paul Pronto in which you discuss the principles that he should use when preparing per formance reports