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Prepare and discuss a responsibility report, E11.25 (LO 2, 3) Service Pronto Plumbing Company is a newly formed company that specializes in plumbing services for
Prepare and discuss a responsibility report, E11.25 (LO 2, 3) Service Pronto Plumbing Company is a newly formed company that specializes in plumbing services for homes and businesses. 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 both segments share basic selling and administrative duties. Paul has asked you to help him create a performance reporting system that will allow him to measure each segment's profitability. The following information has been collected on the home plumbing services segment for the first quarter of 2022: Budget Actual Service revenue $30,000 $31,500 Allocated portion of costs Building 11,000 11,000 depreciation Advertising 5,000 Billing 3.500 Property taxes 1,200 1,000 Materials and 1,500 1,300 supplies Supervisory 10,000 10,500 salaries Insurance 4.000 3.300 Wages 4,000 4,200 Gas and oil 2,700 Equipment 1,600 1,300 depreciation Instructions a. Prepare a responsibility report for the first quarter of 2022 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 performance reports. 4,200 3,000 3,400
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