Edington Plumbing Company is a newly formed company specializing in plumbing services for home and business. The owner, Steve Edington, 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.
Steve 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 2011.
Budgeted Actual
Service revenue $30,000 $31,200
Allocated portion of:
Building depreciation 13,200 13,200
Advertising 6,000 5,040
Billing 4,200 3,600
Property taxes 1,440 1,200
Material and supplies 1,800 1,440
Supervisory salaries 10,800 11,280
Insurance 4,800 4,200
Wages 3,600 3,960
Gas and oil 3,240 4,080
Equipment depreciation 1,920 1,560
Prepare a responsibility report for the first quarter of 2011 for the Home Plumbing Services segment. (List budget amounts from largest to smallest eg 10, 5, 3, 2. If answer is 0, please enter 0 for the amount and NA for the variance. Enter all amounts as positive amounts and subtract where necessary.)