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Total $652,100 The department expects to lay out 26,000 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 minus sign. Differential Analysis Lay out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2) February 22 Lay out Purchase Differential Pages Internally Lay out Effects Services (Alternative 1) (Alternative 2) (Alternative 2) Unit costs: Purchase price of lay out work $ Salaries Benefits Supplies Office expenses Office depreciation Computer depreciation Total unit costs b. The benefit from using an outside service is shown to be v than performing the layout work internally. The fixed costs (depreciation expenses) in the budget are to the decision. Thus, the work should v purchased fre outside on a strictly financial basis. c. Before electing to the five employees, the Guild should consider the of the decision.

Total $652,100 The department expects to lay out 26,000 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 minus sign. Differential Analysis Lay out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2) February 22 Lay out Purchase Differential Pages Internally Lay out Effects Services (Alternative 1) (Alternative 2) (Alternative 2) Unit costs: Purchase price of lay out work $ Salaries Benefits Supplies Office expenses Office depreciation Computer depreciation Total unit costs b. The benefit from using an outside service is shown to be v than performing the layout work internally. The fixed costs (depreciation expenses) in the budget are to the decision. Thus, the work should v purchased fre outside on a strictly financial basis. c. Before electing to the five employees, the Guild should consider the of the decision.

Managerial Accounting
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
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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 $22 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $377,500 Benefits 85,800 Supplies 45,800 Office expenses 57,200 Office depreciation 51,500 Computer depreciation 34,300 Total $652,100 The department expects to lay out 26,000 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 Purchase Differential Pages Lay out Effects Internally Services (Alternative 2) (Alternative 1) (Alternative 2) Unit costs: Purchase price of lay out work Salaries Benefits Supplies Office expenses Office depreciation Computer depreciation Total unit costs 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.
Transcribed Image Text: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 $22 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $377,500 Benefits 85,800 Supplies 45,800 Office expenses 57,200 Office depreciation 51,500 Computer depreciation 34,300 Total $652,100 The department expects to lay out 26,000 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 Purchase Differential Pages Lay out Effects Internally Services (Alternative 2) (Alternative 1) (Alternative 2) Unit costs: Purchase price of lay out work Salaries Benefits Supplies Office expenses Office depreciation Computer depreciation Total unit costs 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.
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