Question: LlrLink Companyis newly formed company specializing in high-speed Internet servicefor homeand business. Theowner, Lenny Kirkland, had divided the company intotv.n segments: Home InternetSewice and




LlrLink Companyis newly formed company specializing in high-speed Internet servicefor homeand business. Theowner, Lenny Kirkland, had divided the company intotv.n segments: Home InternetSewice and Business Internet Service. Each segment is run by its ownsupervisor, while basic selling and administrativeservicesare shared by both segments. Lenny has asked you to help him createa performance reportingsystem that will allcr.'.' him to measureeach segment's performance in termsof its profitability. To thatend, the following information has been collected on the Home Internet Service segment for the frstquarter of 2020. Service revenue Allocated portion of: Building depreciation Advertising Billing P roperty taxes Material and supplies Supervisory salaries I nsurance Wages Gas and oil Equipment depreciation Budgeted $25,300 10,500 4,800 3,800 1,100 1,300 8,900 2,700 2,300 1,400 Actual 325300 1000 1 zoo 9,100 3 zoo 3,100 3 zoo
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