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Exercise 23-11 a (Video) Bonita Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, Lenny Kirkland, had
Exercise 23-11 a (Video) Bonita 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 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 2020. Actual Budgeted $25,300 $25,300 Service revenue Allocated portion of: Building depreciation Advertising Billing Property taxes Material and supplies Supervisory salaries Insurance Wages Gas and oil Equipment depreciation 10,500 4,800 3,800 1,100 1,300 8,900 4,400 2,700 2,300 1,400 10,500 3,900 3,000 1,200 1,400 9,100 3,200 3,100 3,200 1,300 Prepare a responsibility report for the first quarter of 2020 for the Home Internet Service Segment. Prepare a responsibility report for the first quarter of 2020 for the Home Internet Service Segment. BONITA COMPANY Home Internet Services Segment Responsibility Report For the Quarter Ended March 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budgeted Actual $ $
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