The Theater Arts Guild of Dallas (TAG-D) employs 5 people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D productions. The pages are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service is quoting a price of $13 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $224,000 Benefits 36,000 Supplies 21,000 Office expenses 39,000 Office depreciation 28,000 Computer depreciation 24,000 Total $372,000 The department expects to lay out 24,000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs if the department's function were purchased from the outside. Question Content Area a. Prepare a differential analysis dated February 22 to determine whether TAG-D should Lay Out Pages Internally (Alternative 1) or Purchase Layout Services (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisLay Out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2)February 22 Lay Out Pages Internally (Alternative 1) Purchase Layout Services (Alternative 2) Differential Effects (Alternative 2) Unit costs: Purchase price of layout work $fill in the blank fcc537002012045_1 $fill in the blank fcc537002012045_2 $fill in the blank fcc537002012045_3 Salaries fill in the blank fcc537002012045_4 fill in the blank fcc537002012045_5 fill in the blank fcc537002012045_6 Benefits fill in the blank fcc537002012045_7 fill in the blank fcc537002012045_8 fill in the blank fcc537002012045_9 Supplies fill in the blank fcc537002012045_10 fill in the blank fcc537002012045_11 fill in the blank fcc537002012045_12 Office expenses fill in the blank fcc537002012045_13 fill in the blank fcc537002012045_14 fill in the blank fcc537002012045_15 Office depreciation fill in the blank fcc537002012045_16 fill in the blank fcc537002012045_17 fill in the blank fcc537002012045_18 Computer depreciation fill in the blank fcc537002012045_19 fill in the blank fcc537002012045_20 fill in the blank fcc537002012045_21 Total unit costs $fill in the blank fcc537002012045_22 $fill in the blank fcc537002012045_23 $fill in the blank fcc537002012045_24 Question Content Area b. The benefit from using an outside service is shown to be than performing the layout work internally. The fixed costs (depreciation expenses) in the budget are to the decision. Thus, the work should purchased from the outside on a strictly financial basis. c. Before electing to the five employees, the Guild should consider the of the decision.

The Theater Arts Guild of Dallas (TAG-D) employs 5 people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D productions. The pages are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service is quoting a price of $13 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $224,000 Benefits 36,000 Supplies 21,000 Office expenses 39,000 Office depreciation 28,000 Computer depreciation 24,000 Total $372,000 The department expects to lay out 24,000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs if the department's function were purchased from the outside. Question Content Area a. Prepare a differential analysis dated February 22 to determine whether TAG-D should Lay Out Pages Internally (Alternative 1) or Purchase Layout Services (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisLay Out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2)February 22 Lay Out Pages Internally (Alternative 1) Purchase Layout Services (Alternative 2) Differential Effects (Alternative 2) Unit costs: Purchase price of layout work $fill in the blank fcc537002012045_1 $fill in the blank fcc537002012045_2 $fill in the blank fcc537002012045_3 Salaries fill in the blank fcc537002012045_4 fill in the blank fcc537002012045_5 fill in the blank fcc537002012045_6 Benefits fill in the blank fcc537002012045_7 fill in the blank fcc537002012045_8 fill in the blank fcc537002012045_9 Supplies fill in the blank fcc537002012045_10 fill in the blank fcc537002012045_11 fill in the blank fcc537002012045_12 Office expenses fill in the blank fcc537002012045_13 fill in the blank fcc537002012045_14 fill in the blank fcc537002012045_15 Office depreciation fill in the blank fcc537002012045_16 fill in the blank fcc537002012045_17 fill in the blank fcc537002012045_18 Computer depreciation fill in the blank fcc537002012045_19 fill in the blank fcc537002012045_20 fill in the blank fcc537002012045_21 Total unit costs $fill in the blank fcc537002012045_22 $fill in the blank fcc537002012045_23 $fill in the blank fcc537002012045_24 Question Content Area b. The benefit from using an outside service is shown to be than performing the layout work internally. The fixed costs (depreciation expenses) in the budget are to the decision. Thus, the work should purchased from the outside on a strictly financial basis. c. Before electing to the five employees, the Guild should consider the of the decision.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 8E

See similar textbooks

Question Content Area

a. Prepare a differential analysis dated February 22 to determine whether TAG-D should Lay Out Pages Internally (Alternative 1) or Purchase Layout Services (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential AnalysisLay Out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2)February 22

	Lay Out Pages Internally (Alternative 1)	Purchase Layout Services (Alternative 2)	Differential Effects (Alternative 2)
Unit costs:
Purchase price of layout work	$fill in the blank fcc537002012045_1	$fill in the blank fcc537002012045_2	$fill in the blank fcc537002012045_3
Salaries	fill in the blank fcc537002012045_4	fill in the blank fcc537002012045_5	fill in the blank fcc537002012045_6
Benefits	fill in the blank fcc537002012045_7	fill in the blank fcc537002012045_8	fill in the blank fcc537002012045_9
Supplies	fill in the blank fcc537002012045_10	fill in the blank fcc537002012045_11	fill in the blank fcc537002012045_12
Office expenses	fill in the blank fcc537002012045_13	fill in the blank fcc537002012045_14	fill in the blank fcc537002012045_15
Office depreciation	fill in the blank fcc537002012045_16	fill in the blank fcc537002012045_17	fill in the blank fcc537002012045_18
Computer depreciation	fill in the blank fcc537002012045_19	fill in the blank fcc537002012045_20	fill in the blank fcc537002012045_21
Total unit costs	$fill in the blank fcc537002012045_22	$fill in the blank fcc537002012045_23	$fill in the blank fcc537002012045_24

Question Content Area

b. The benefit from using an outside service is shown to be

than performing the layout work internally. The fixed costs (depreciation expenses) in the budget are

to the decision. Thus, the work should

purchased from the outside on a strictly financial basis.

c. Before electing to

the five employees, the Guild should consider the

of the decision.

The Theater Arts Guild of Dallas (TAG-D) employs 5 people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and
other publications for the TAG-D productions. The pages are delivered to an outside company for printing. The company is considering an outside publication service
for the layout work. The outside service is quoting a price of $13 per layout page. The budget for the Publication Department for the current year is as follows:
Salaries
Benefits
Supplies
Office expenses
Office depreciation
Computer depreciation
Total
$224,000
36,000
21,000
39,000
28,000
24,000
$372,000
The department expects to lay out 24,000 pages for the current year. The Publication Department office space and equipment would be used for future
administrative needs if the department's function were purchased from the outside.
a. Prepare a differential analysis dated February 22 to determine whether TAG-D should Lay Out Pages Internally (Alternative 1) or Purchase Layout Services
(Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis
Lay Out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2)
February 22
Lay Out
Pages
Internally
(Alternative 1) (Alternative 2)
Purchase
Layout
Services
Differential
Effects
(Alternative 2)

a. Prepare a differential analysis dated February 22 to determine whether TAG-D should Lay Out Pages Internally (Alternative 1) or Purchase Layout Services
(Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis
Lay Out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2)
February 22
Lay Out
Pages
Internally
(Alternative 1) (Alternative 2)
Unit costs:
Purchase price of layout work
Salaries
Benefits
Supplies
Office expenses
Office depreciation
Computer depreciation
Total unit costs
0
Purchase
Layout
Services
0
0
0
0
b. The benefit from using an outside service is shown to be greater
in the budget are irrelevant
c. Before electing to lay off
Differential
Effects
(Alternative 2)
0
0
than performing the layout work internally. The fixed costs (depreciation expenses)
✔ purchased from the outside on a strictly financial basis.
✔ to the decision. Thus, the work should be
✔ the five employees, the Guild should consider the long-run impact
✔ of the decision.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Salaries	$224,000
Benefits	36,000
Supplies	21,000
Office expenses	39,000
Office depreciation	28,000
Computer depreciation	24,000
Total	$372,000