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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
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 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. 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 epare a responsibility report for the first quarter of 2020 for the Home Internet Service Segment.
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