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 2017. Actual Budgeted $24,800 $26,000 Service revenue Allocated portion of: Building depreciation Advertising Billing Property taxes Material and supplies Supervisory salaries Insurance Wages Gas and oil Equipment depreciation 10,000 4,600 3,600 1,300 1,500 9,500 4,000 3,000 10,000 4,700 3,100 1,000 1,200 9,300 3,100 3,200 3,500 1,500 2,800 1,500 Prepare a responsibility report for the first quarter of 2017 for the Home Internet Service segment. URLINK COMPANY Home Internet Services Segment Responsibility Report For the Quarter Ended March 31, 2017 Ne Budgeted Actual n Service Revenue $ 25,000 ta 26,200 1,200 Variable Costs Material and Supplies 1,600 1,200 400 Wages 3,000 3,250 250 Gas and Oil 2,800 3,400 600 Total Variable Costs 7,400 7,850 450 Contribution Margin 17,600 18,350 750 Controllable Fixed Costs Ooo Question 3 of 4 0.47 / 1 Billing Property taxes Material and supplies Supervisory salaries Insurance Wages Gas and oil Equipment depreciation 3,600 1,300 1,500 9,500 4,000 3,000 2,800 1,500 3,100 1,000 1,200 9,300 3,100 3,200 3,500 1,500 Prepare a responsibility report for the first quarter of 2017 for the Home Internet Service segment. URLINK COMPANY Home Internet Services Segment Responsibility Report For the Quarter Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budgeted Actual 25,000 $ 26,200 $ 1,200 Favorable 1,600 1,200 i 400 Favorable 3,000 i 3,250 250 Unfavorable 2,800 i 3,400 600 Unfavorable 7,400 7,850 450 Unfavorable 17,600 18,350 750 Favorable 9,000 9,500 500 Unfavorable 4,000 i 3,900 100 Favorable 1,500 i 1,300 200 Favorable 14,500 14,700 200 Unfavorable 3,100 3,650 $ 550 Favorable