Please explain everything you do

Exercise 14-11 Riverbed 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 $24,900 Actual $26,300 11,500 5,400 Service revenue Allocated portion of: Building depreciation Advertising Billing Property taxes Material and supplies Supervisory salaries Insurance Wages Gas and oil Equipment depreciation 3,200 1,100 1,500 8,500 4,100 3,100 2,700 1,600 11,500 4,300 2,700 1,000 1,400 9,500 3,600 3,200 3,200 1,200 (a) Prepare a responsibility report for the first quarter of 2017 for the Home Internet Service segment. RIVERBED COMPANY Home Internet Services Segment Responsibility Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budgeted Actual