Make-or-Buy Decision for a Service Company The Theater Arts Guild of Dallas (TAG-D) employs five 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 from the outside (Alternative 2). If an amount is zero, enter "0". 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) Costs: Purchase price of layout work $fill in the blank da23deffbfd5028_1 $fill in the blank da23deffbfd5028_2 $fill in the blank da23deffbfd5028_3 Salaries fill in the blank da23deffbfd5028_4 fill in the blank da23deffbfd5028_5 fill in the blank da23deffbfd5028_6 Benefits fill in the blank da23deffbfd5028_7 fill in the blank da23deffbfd5028_8 fill in the blank da23deffbfd5028_9 Supplies fill in the blank da23deffbfd5028_10 fill in the blank da23deffbfd5028_11 fill in the blank da23deffbfd5028_12 Office expenses fill in the blank da23deffbfd5028_13 fill in the blank da23deffbfd5028_14 fill in the blank da23deffbfd5028_15 Office depreciation fill in the blank da23deffbfd5028_16 fill in the blank da23deffbfd5028_17 Computer depreciation fill in the blank da23deffbfd5028_18 fill in the blank da23deffbfd5028_19 Total costs $fill in the blank da23deffbfd5028_20 $fill in the blank da23deffbfd5028_21 $fill in the blank da23deffbfd5028_22

Make-or-Buy Decision for a Service Company The Theater Arts Guild of Dallas (TAG-D) employs five 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 from the outside (Alternative 2). If an amount is zero, enter "0". 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) Costs: Purchase price of layout work $fill in the blank da23deffbfd5028_1 $fill in the blank da23deffbfd5028_2 $fill in the blank da23deffbfd5028_3 Salaries fill in the blank da23deffbfd5028_4 fill in the blank da23deffbfd5028_5 fill in the blank da23deffbfd5028_6 Benefits fill in the blank da23deffbfd5028_7 fill in the blank da23deffbfd5028_8 fill in the blank da23deffbfd5028_9 Supplies fill in the blank da23deffbfd5028_10 fill in the blank da23deffbfd5028_11 fill in the blank da23deffbfd5028_12 Office expenses fill in the blank da23deffbfd5028_13 fill in the blank da23deffbfd5028_14 fill in the blank da23deffbfd5028_15 Office depreciation fill in the blank da23deffbfd5028_16 fill in the blank da23deffbfd5028_17 Computer depreciation fill in the blank da23deffbfd5028_18 fill in the blank da23deffbfd5028_19 Total costs $fill in the blank da23deffbfd5028_20 $fill in the blank da23deffbfd5028_21 $fill in the blank da23deffbfd5028_22

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question Content Area

Make-or-Buy Decision for a Service Company

The Theater Arts Guild of Dallas (TAG-D) employs five 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 from the outside (Alternative 2). If an amount is zero, enter "0".

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)
Costs:
Purchase price of layout work	$fill in the blank da23deffbfd5028_1	$fill in the blank da23deffbfd5028_2	$fill in the blank da23deffbfd5028_3
Salaries	fill in the blank da23deffbfd5028_4	fill in the blank da23deffbfd5028_5	fill in the blank da23deffbfd5028_6
Benefits	fill in the blank da23deffbfd5028_7	fill in the blank da23deffbfd5028_8	fill in the blank da23deffbfd5028_9
Supplies	fill in the blank da23deffbfd5028_10	fill in the blank da23deffbfd5028_11	fill in the blank da23deffbfd5028_12
Office expenses	fill in the blank da23deffbfd5028_13	fill in the blank da23deffbfd5028_14	fill in the blank da23deffbfd5028_15
Office depreciation		fill in the blank da23deffbfd5028_16	fill in the blank da23deffbfd5028_17
Computer depreciation		fill in the blank da23deffbfd5028_18	fill in the blank da23deffbfd5028_19
Total costs	$fill in the blank da23deffbfd5028_20	$fill in the blank da23deffbfd5028_21	$fill in the blank da23deffbfd5028_22

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