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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 rur 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 $ 25,200 $ 26,000 Allocated portion of: Building depreciation Advertising 11,700 11,700 5,400 4,600 Billing 3,600 3.100 Property taxes 1.200 1.100 1.400 1,300 Material and supplies Supervisory salaries 9,000 9,300 Insurance 4,100 3,200 Budgeted Actual $ 25,200 $ 26,000 Service revenue Allocated portion of: Building depreciation Advertising Billing 11,700 11700 5,400 4,600 3,600 3,100 Property taxes 1.200 1.100 1,400 1,300 Material and supplies Supervisory salaries Insurance 9,000 9,300 4.100 3,200 Wages 2,800 3,300 Gas and oil 2.900 3,600 Equipment depreciation 1.700 1,500 Prepare a responsibility report for the first quarter of 2017 for the Home Internet Service segment. 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 N Budgeted Actual 1 Service Revenue $ 25200 $ 26000 $ 806 Variable costs Material and Supplies 200 Wages 60% Gas and Oil 200 Total Variable costs Contribution Margin Total Controllable Fixed Costs : Supervisory Salaries 8900 9700 800 Insurance 3500 3500 Equipment Depreciation 1700 1500 200 Total Controllable Fixed Costs : 14100 14700 600 Controllable Margin . $ 3400 $ 3800 $ 400 Favorable Unfavorable Neither Favorable nor Unfavorable Budgeted Actual 25200 $ $ 26000 $ 800 Favorable 200 Favorable 600 Unfavorable 200 Unfavorable Unfavorable Favorable . Unfavorable 9700 800 8900

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