Exercise 10-11 UrLink Company is a newly formed company specializing in high-spe

Question

Exercise 10-11 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 $26,000 Allocated portion of 10,000 4,600 3,600 1,300 1,500 9,500 4,000 3,000 2,800 1,500 10,000 4,700 3,100 1,000 1,200 9,300 3,100 3,200 3,500 1,500 Building depreciation Advertising Billing Property taxes Material and supplics salaries Insurance Wages Gas and oil Equipment depreciation 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

Explanation / Answer

Dear Student,

Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.

Responsibility Report for the first Quarter 2017 Difference Budget Actual Varriance Service revenue $        25,000 $        26,200 $        1,200 Favourable Variable Cost: Material and supplies $          1,600 $          1,200 $            400 Favourable Wages $          3,000 $          3,250 $            250 UnFavourable Gas and oil $          2,800 $          3,400 $            600 UnFavourable Total variable Cost $          7,400 $          7,850 $            450 UnFavourable Contribution Margin $        17,600 $        18,350 $            750 Favourable Controllable Fixed Cost: Supervisory salaries $          9,000 $          9,500 $            500 UnFavourable Insurance $          4,000 $          3,900 $            100 Favourable Equipment depreciation $          1,500 $          1,300 $            200 Favourable Total Controllable Fixed Cost $        14,500 $        14,700 $            200 UnFavourable Controllable Margin $          3,100 $          3,650 $            550 Favourable

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.