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. Budgeted ActualService revenue $24,800 $25,000Allocated portion of: Building depreciation 10,300 10,300 Advertising 4,700 4,200 Billing 3,200 3,200 Property taxes 1,100 1,200Material and supplies 1,400 1,300Supervisory salaries 9,400 9,400Insurance 4,300 3,200Wages 2,900 3,400Gas and oil 3,100 3,700Equipment depreciation 1,500 1,500Prepare a responsibility report for the first quarter of 2017 for the Home Internet Service segment.URLINK COMPANYHome Internet Services SegmentResponsibility ReportFor the Quarter Ended March 31, 2017 Difference Budgeted Actual FavorableUnfavorableNeither Favorablenor Unfavorable $ $ $ $ $ $ eTextbook and Media Save for Later

The variance is the difference between standard and actual cost of the production. If actual costs…

Answered: rLink Company is a newly formed company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 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.

	Budgeted	Actual
Service revenue	$24,800	$25,000
Allocated portion of:
Building depreciation	10,300	10,300
Advertising	4,700	4,200
Billing	3,200	3,200
Property taxes	1,100	1,200
Material and supplies	1,400	1,300
Supervisory salaries	9,400	9,400
Insurance	4,300	3,200
Wages	2,900	3,400
Gas and oil	3,100	3,700
Equipment depreciation	1,500	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
	Budgeted	Actual	Favorable Unfavorable Neither Favorable nor Unfavorable
	$	$	$











	$	$	$

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