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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 $25,800 $25,200 Allocated portion of: Building depreciation 10,200 10,200 Advertising 5,200 4,400 Billing 3,300 2,700 Property taxes 1,200 1,200 Material and supplies 1,400 1,300 Supervisory salaries 8,500 9.700 Insurance 3,700 3,400 Wages 2,800 3,600 Gas and oil 2,600 3,100 Equipment depreciation 1,400 1,100 Prepare a responsibility report for the first quarter of 2020 for the Home Internet Service Segment. URLINK COMPANY Home Internet Services Segment
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