Hey can anyone also show the work of how they got the answer? Please and thank y
ID: 2469809 • Letter: H
Question
Hey can anyone also show the work of how they got the answer? Please and thank you!
Exercise 22-11 Your answer is partially correct. Try again Kirkland Plumbing Company is a newly formed company specializing in plumbing services for home and business. The owner, Lenny Kirkland, 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 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 Plumbing Services segment for the first quarter of 2014 LI Actua Service revenue $25,500 $26,700 Allocated portion of 11,400 4,900 3,600 1,300 1,400 9,400 4,300 3,000 2,400 1,500 11,400 4,700 3,300 1,100 1,400 9,200 3,000 3,300 3,500 1,400 Building depreciation Advertising Billing Property taxes Material and supplies Supervisory salaries Insurance Wages Gas and oil Equipment depreciationExplanation / Answer
Solution Karkland Plumbing Company Home Plumbing Services Segment Reponsibility Report For the Quarter Ended March 31,2014 Budget Actual Difference F/U/N Service Revenue 25500 26700 1200 F Variable Cost Advertising 4900 4700 200 F Billing 3600 3300 300 F Equpiment Depriciation 1500 1400 100 F Wages 3000 3300 300 U Materail & Supplies 1400 1400 0 N Billing 3600 3300 300 F Gas and Oil 2400 3500 1100 U TOTAL VERIABLE COST 20400 17400 Controllable Fixed Cost Buiding Depriciation 11400 11400 0 N Supervisory salaries 9400 9200 200 F Insurance 4300 3000 1300 F Property Tax 1300 1100 200 F Total Controllable Fixed Cost 26400 24700