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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 segments 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		$25,000		$26,700
Allocated portion of:
Building depreciation		11,400		11,400
Advertising		5,300		4,600
Billing		3,700		3,100
Property taxes		1,100		1,100
Material and supplies		1,400		1,300
Supervisory salaries		9,500		9,400
Insurance		3,800		3,700
Wages		3,200		3,300
Gas and oil		2,300		3,500
Equipment depreciation		1,400		1,100

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
Controllable MarginContribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginContribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes		$		$		$	UnfavorableFavorableNeither Favorable nor Unfavorable FavorableUnfavorableNeither Favorable nor Unfavorable
Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes
Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes							Neither Favorable nor UnfavorableFavorableUnfavorable FavorableUnfavorableNeither Favorable nor Unfavorable
Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes							FavorableNeither Favorable nor UnfavorableUnfavorable UnfavorableNeither Favorable nor UnfavorableFavorable
Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes							FavorableNeither Favorable nor UnfavorableUnfavorable UnfavorableNeither Favorable nor UnfavorableFavorable
Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes							FavorableUnfavorableNeither Favorable nor Unfavorable UnfavorableNeither Favorable nor UnfavorableFavorable
Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Contribution MarginEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes							UnfavorableNeither Favorable nor UnfavorableFavorable FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes							UnfavorableFavorableNeither Favorable nor Unfavorable FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes							UnfavorableFavorableNeither Favorable nor Unfavorable FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsTotal Variable CostsVariable CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes							Neither Favorable nor UnfavorableFavorableUnfavorable FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes							UnfavorableNeither Favorable nor UnfavorableFavorable FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes Controllable MarginControllable Fixed CostsEquipment DepreciationGas and OilInsuranceMaterial and SuppliesService RevenueSupervisory SalariesTotal Controllable Fixed CostsWagesBuilding DepreciationAdvertisingBillingProperty Taxes		$		$		$	Neither Favorable nor UnfavorableFavorableUnfavorable

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