Exercise 22-11 Service and Business Internet Service. Each segment is run by its
ID: 2572611 • Letter: E
Question
Exercise 22-11 Service and Business Internet Service. Each segment is run by its own supervisor, while basic selling and administr Lenny has asked you to help him create a performance been collected on the Home Internet Service segment for the first quarter of 2017 manociis utt reporting system that will allow him to mesure each sgnents parismance i temtyl 0tato $25,000 $26,600 Allocated portion of Building depreciation 11,000 11,000 4,8004,600 3,500 2,800 1,100 1,000 1,500 1,300 8,900 9,700 3,500 3,500 2,900 3,500 3,100 3,300 1,700 1,500 Billing Property taxes salaries Insurance Wages Gas and oil Equipment depreciation bility report for the first quarter of 2017 for the Home Internet Service Segment March 31, 2017 Unfavorable Neither FavorableExplanation / Answer
UrLink Company
Responsibility Report
UrLink Company
Home Internet Services Segment
Responsibility Report
For the Quarter Ended March 31, 2017
Budgeted
Actual
Difference
F/UF/ Neither
Sales
$25,000
$26,600
$1,600 F
Variable Costs:
Materials and Supplies
$1,500
$1,300
$200 F
Wages
$2,900
$3,500
$600 UF
Gas and oil
$3,100
$3,300
$200 UF
Total Variable Cost
$7,500
$8,100
$600 UF
Contribution Margin
$17,500
$18,500
$1,000 F
Controllable Fixed Costs:
Supervisory Salary
$8,900
$9,700
$800 UF
Insurance
$3,500
$3,500
0
Equipment Depreciation
$1,700
$1,500
$200 F
Total Controllable Fixed Costs
$14,100
$14,700
$600 UF
Controllable Margin
$3,400
$3,800
$400 F
Notes:
UrLink Company
Home Internet Services Segment
Responsibility Report
For the Quarter Ended March 31, 2017
Budgeted
Actual
Difference
F/UF/ Neither
Sales
$25,000
$26,600
$1,600 F
Variable Costs:
Materials and Supplies
$1,500
$1,300
$200 F
Wages
$2,900
$3,500
$600 UF
Gas and oil
$3,100
$3,300
$200 UF
Total Variable Cost
$7,500
$8,100
$600 UF
Contribution Margin
$17,500
$18,500
$1,000 F
Controllable Fixed Costs:
Supervisory Salary
$8,900
$9,700
$800 UF
Insurance
$3,500
$3,500
0
Equipment Depreciation
$1,700
$1,500
$200 F
Total Controllable Fixed Costs
$14,100
$14,700
$600 UF
Controllable Margin
$3,400
$3,800
$400 F
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