Acc560 Managerial Accounting: E10-9(a) Pronto Plumbing Company is a newly formed company

Acc560 Managerial Accounting

E10-9 (a)
Pronto Plumbing Company is a newly formed company specializing in plumbing services for home and business. The owner, Paul Pronto, had divided the company into two segments: Home Plumbing Services and Business Plumbing Services. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments.
Paul 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 Plumbing Services segment for the first quarter of 2008.
Budgeted Actual
Service revenue 25,000 26,000
Allocated portion of:
Building depreciation 11,000 11,000
Advertising 5,000 4,200
Billing 3,500 3,000
Property taxes 1,200 1,000
Material and supplies 1,500 1,200
Supervisory salaries 9,000 9,400
Insurance 4,000 3,500
Wages 3,000 3,300
Gas and oil 2,700 3,400
Equipment depreciation 1,600 1,300

a. Prepare a responsibility report for the first quarter of 2008 for the Home Plumbing Services segment. (List budget amounts from largest to smallest eg 10, 5, 3, 2.)

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