Managerial Accounting: Tools for Business Decision Making 7e Binder Ready Version + WileyPLUS Registration Card
7th Edition
ISBN: 9781119036449
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: Wiley (WileyPLUS Products)
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Textbook Question
Chapter 10, Problem 10.11E
UrLink 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.
| Budget | Actual | |
| Service revenue | $25,000 | $26,200 |
| Allocated portion or: Building |
11,000 | 11,000 |
| Advertising | 5,000 | 4,200 |
| Billing | 3,500 | 3,000 |
| Property taxes | 1,200 | 1,000 |
| Material and supplies | 1,600 | 1,200 |
| Supervisory salaries | 9,000 | 9,500 |
| Insurance | 4,000 | 3,900 |
| Wages | 3,000 | 3,250 |
| Gas and oil | 2,800 | 3,400 |
| Equipment depreciation | 1,500 | 1,300 |
Instructions
(a) Prepare a responsibility report for the first quarter of 2017 for the Home internet Service segment.
(b) - Write a memo to Lenny Kirkland discussing the principles that should be used when preparing performance reports.
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Students have asked these similar questions
E22-11 UrLink Company is a newly formed company specializing in high-speed Internet Prepare and discuss a
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 cach 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,
responsibility reporl.
(L0 2, 3), P
I 22 Budgetary Control and Responsibility Accounting
Budget
$25,000
Actual
Service revenue
Allocated portion of:
Building depreciation
Advertising
Billing
Property taxes
Material and supplies
Supervisory salaries
Insurance
$26,200
11,000
5,000
3,500
1,200
1,600
9,000
4,000
3,000
2,800
1,500
11,000…
Assume you have been hired by Hilton Hotels and Resorts. As part of your new role in the accounting department, you have been tasked to set up a responsibility accounting structure for the company. As your first task, your supervisor has asked you to give an example of a cost center, profit center, and an investment center within the Hilton organization. Your supervisor is a little unsure of the difference between a profit center and investment center and would like you to explain the difference.
E22-11 UrLink Company is a newly formed company specializing in high-speed Internet Prepare and discuss a
service for home and business. The owner, Lenny Kirkland, had divided the company into responsibility report.
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.
(LO 2, 3), AP
04 22 Budgetary Control and Responsibility Accounting
Budget
$25,000
Actual
Service revenue
Allocated portion of:
Building depreciation
Advertising
Billing
Property taxes
Material and supplies
Supervisory salaries
Insurance
Wages
Gas and oil
$26,200
11,000
5,000
3,500
1,200
1,600
9,000
4,000
3,000…
Chapter 10 Solutions
Managerial Accounting: Tools for Business Decision Making 7e Binder Ready Version + WileyPLUS Registration Card
Ch. 10 - Prob. 1QCh. 10 - The following purposes are part of a budgetary...Ch. 10 - How may a budget report for the second quarter...Ch. 10 - Ken Bay questions the usefulness of a master sales...Ch. 10 - Under what circumstances may a static budget be an...Ch. 10 - A flexible budget is really a series of static...Ch. 10 - The static manufacturing overhead budget based on...Ch. 10 - A static overhead budget based on 40,000 direct...Ch. 10 - Megan Pedigo is confused about how a flexible...Ch. 10 - Call Company has prepared a graph of flexible...
Ch. 10 - The flexible budget formula is fixed costs 50,000...Ch. 10 - What is management by exception? What criteria may...Ch. 10 - What is responsibility accounting? Explain the...Ch. 10 - Prob. 14QCh. 10 - Distinguish between controllable and...Ch. 10 - How do responsibility reports differ from budget...Ch. 10 - Prob. 17QCh. 10 - Distinguish among the three types of...Ch. 10 - Prob. 19QCh. 10 - Prob. 20QCh. 10 - Prob. 21QCh. 10 - Prob. 22QCh. 10 - Prob. 23QCh. 10 - Prob. 24QCh. 10 - Prob. 25QCh. 10 - Prob. 26QCh. 10 - For the quarter ended March 31, 2017, Croix...Ch. 10 - Data for Croix Company are given in BE10-1. In the...Ch. 10 - In Rooney Company, direct labor is 20 per hour....Ch. 10 - Gundy Company expects to produce 1,200,000 units...Ch. 10 - Data for Gundy Company are given in BE10-4. In...Ch. 10 - In the Assembly Department of Hannon Company,...Ch. 10 - Torres Company accumulates the following summary...Ch. 10 - For the year ending December 31, 2017, Cobb...Ch. 10 - Prob. 10.9BECh. 10 - Prob. 10.10BECh. 10 - Prob. 10.11BECh. 10 - Prob. 10.12BECh. 10 - Wade Company estimates that it will produce 6,000...Ch. 10 - In Pargo Company's flexible budget graph, the...Ch. 10 - Prob. 10.3DICh. 10 - Prob. 10.4DICh. 10 - Connie Rice has prepared the following list of...Ch. 10 - Crede Company budgeted selling expenses of 30,000...Ch. 10 - Myers Company uses a flexible budget for...Ch. 10 - Using the information in E10-3. assume that in...Ch. 10 - Fallon Company uses flexible budgets to control...Ch. 10 - The actual selling expenses incurred in March 2017...Ch. 10 - Appliance Possible Inc. (AP) is a manufacturer of...Ch. 10 - Rensing Groomers is in the dog-grooming business....Ch. 10 - As sales manager, Joe Batista was given the...Ch. 10 - Chubbs Inc.'s manufacturing overhead budget for...Ch. 10 - UrLink Company is a newly formed company...Ch. 10 - Venetian Company has two production departments....Ch. 10 - Fey Company's Organization chart includes the...Ch. 10 - The Mixing Department manager of Malone Company is...Ch. 10 - Horatio Inc. has three divisions which are...Ch. 10 - The Sports Equipment Division of Harrington...Ch. 10 - The South Division of Wiig Company reported the...Ch. 10 - The Dinkle and Frizell Denial Clinic provides both...Ch. 10 - The Ferrell Transportation Company uses a...Ch. 10 - Presented below is selected information for three...Ch. 10 - Presenled below is selected financial information...Ch. 10 - Bumblebee Company estimates that 300,000 direct...Ch. 10 - Zelmer Company manufactures tablecloths. Sales...Ch. 10 - Ratchet Company uses budgets in controlling costs....Ch. 10 - Clarke Inc. operates the Patio Furniture Division...Ch. 10 - Optimus Company manufactures a variety of tools...Ch. 10 - Durham Company uses a responsibility reporting...Ch. 10 - Sentinel Industries has manufactured prefabricated...Ch. 10 - CURRENT DESIGNS The Current Designs staff has...Ch. 10 - Green Pastures is a 400-acre farm on the outskirts...Ch. 10 - Prob. 10.2BYPCh. 10 - Prob. 10.3BYPCh. 10 - The manufacturing overhead budget for Fleming...Ch. 10 - Ethics Case American Products Corporation...Ch. 10 - Considering Your Costs and Benefits Preparing a...
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