Exercise 10-11 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 create a performance reporting system that will allow him to measure each segments 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 $24,500 $25,100 Allocated portion of: Building depreciation 11,600 11,600 Advertising 4,700 4,700 Billing 3,400 3,000 Property taxes 1,300 1,000 Material and supplies 1,500 1,300 Supervisory salaries 8,800 9,300 Insurance 4,500 3,500 Wages 3,100 3,200 Gas and oil 2,500 3,800 Equipment depreciation 1,700 1,300 Prepare a responsibility report for the first quarter of 2017 for the Home Internet Service Segment. URLINK COMPANY Home Internet Services Segment Responsibility Report For the Quarter Ended March 31, 2017 Difference Budgeted Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $

Exercise 10-12 Venetian Company has two production departments, Fabricating and Assembling. At a department managers meeting, the controller uses flexible budget graphs to explain total budgeted costs. Separate graphs based on direct labor hours are used for each department. The graphs show the following. 1. At zero direct labor hours, the total budgeted cost line and the fixed cost line intersect the vertical axis at $48,000 in the Fabricating Department and $38,000 in the Assembling Department. 2. At normal capacity of 47,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $132,600 in the Fabricating Department, and $103,800 in the Assembling Department. State the total budgeted cost formula for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) Fabricating Department = $ + total of $ per direct labor hour Assembling Department = $ + total of $ per direct labor hour LINK TO TEXT Compute the total budgeted cost for each department, assuming actual direct labor hours worked were 50,000 and 44,000, in the Fabricating and Assembling Departments, respectively. Fabricating Department Assembling Department The total budgeted cost $ $