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Pronghorn Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, Lenny Kirkland, divided the company into
Pronghorn Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, Lenny Kirkland, 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 2022. Budgeted Actual Service revenue $26,000 $27,248 Allocated portion of: Building depreciation 11,440 11,440 Advertising 5,200 4,368 Billing 3,640 3,120 Property taxes 1,248 1,040 Material and supplies 1,664 1,248 Supervisory salaries 9,360 9,880 Insurance 4,160 4,056 Wages 3,120 3,380 Gas and oil 2,912 3,536 Equipment depreciation 1,560 1,352 Prepare a responsibility report for the first quarter of 2022 for the Home Internet Service Segment.
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