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Riverbed 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
Riverbed 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 $ 26,500 27,772 Allocated portion of: Building depreciation 11,660 11,660 Advertising 5,300 4,452 Billing 3,710 3,180 Property taxes 1,272 1,060 Material and supplies 1,696 1,272 Supervisory salaries 9,540 10,070 Insurance 4,240 4,134 Wages 3,180 3,445 Gas and oil 2,968 3,604 Equipment depreciation 1,590 1,378 Prepare a responsibility report for the first quarter of 2022 for the Home Internet Service Segment. Prepare a responsibility report for the first quarter of 2022 for the Home Internet Service Segment. RIVERBED COMPANY Home Internet Service Segment Responsibility Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budgeted Actual $ $ $ $ 5
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