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 $21 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $332,600 Benefits 75,600 Supplies 40,300 Office expenses 50,400 Office depreciation 45,400 Computer depreciation 30,200 Total $574,500 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 AnalysisLay out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2)February 22 Lay out Pages Internally (Alternative 1) Purchase Lay out Services (Alternative 2) Differential Effects (Alternative 2) Unit costs: Purchase price of lay out work $fill in the blank 7997e5fccf8cfdc_1 $fill in the blank 7997e5fccf8cfdc_2 $fill in the blank 7997e5fccf8cfdc_3 Salaries fill in the blank 7997e5fccf8cfdc_4 fill in the blank 7997e5fccf8cfdc_5 fill in the blank 7997e5fccf8cfdc_6 Benefits fill in the blank 7997e5fccf8cfdc_7 fill in the blank 7997e5fccf8cfdc_8 fill in the blank 7997e5fccf8cfdc_9 Supplies fill in the blank 7997e5fccf8cfdc_10 fill in the blank 7997e5fccf8cfdc_11 fill in the blank 7997e5fccf8cfdc_12 Office expenses fill in the blank 7997e5fccf8cfdc_13 fill in the blank 7997e5fccf8cfdc_14 fill in the blank 7997e5fccf8cfdc_15 Office depreciation fill in the blank 7997e5fccf8cfdc_16 fill in the blank 7997e5fccf8cfdc_17 fill in the blank 7997e5fccf8cfdc_18 Computer depreciation fill in the blank 7997e5fccf8cfdc_19 fill in the blank 7997e5fccf8cfdc_20 fill in the blank 7997e5fccf8cfdc_21 Total unit costs $fill in the blank 7997e5fccf8cfdc_22 $fill in the blank 7997e5fccf8cfdc_23 $fill in the blank 7997e5fccf8cfdc_24 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.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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 $21 per layout page. The budget for the Publication Department for the current year is as follows:
| Salaries | $332,600 |
| Benefits | 75,600 |
| Supplies | 40,300 |
| Office expenses | 50,400 |
| Office |
45,400 |
| Computer depreciation | 30,200 |
| Total | $574,500 |
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.
| Lay out Pages Internally (Alternative 1) |
Purchase Lay out Services (Alternative 2) |
Differential Effects (Alternative 2) |
|
| Unit costs: | |||
| Purchase price of lay out work | $fill in the blank 7997e5fccf8cfdc_1 | $fill in the blank 7997e5fccf8cfdc_2 | $fill in the blank 7997e5fccf8cfdc_3 |
| Salaries | fill in the blank 7997e5fccf8cfdc_4 | fill in the blank 7997e5fccf8cfdc_5 | fill in the blank 7997e5fccf8cfdc_6 |
| Benefits | fill in the blank 7997e5fccf8cfdc_7 | fill in the blank 7997e5fccf8cfdc_8 | fill in the blank 7997e5fccf8cfdc_9 |
| Supplies | fill in the blank 7997e5fccf8cfdc_10 | fill in the blank 7997e5fccf8cfdc_11 | fill in the blank 7997e5fccf8cfdc_12 |
| Office expenses | fill in the blank 7997e5fccf8cfdc_13 | fill in the blank 7997e5fccf8cfdc_14 | fill in the blank 7997e5fccf8cfdc_15 |
| Office depreciation | fill in the blank 7997e5fccf8cfdc_16 | fill in the blank 7997e5fccf8cfdc_17 | fill in the blank 7997e5fccf8cfdc_18 |
| Computer depreciation | fill in the blank 7997e5fccf8cfdc_19 | fill in the blank 7997e5fccf8cfdc_20 | fill in the blank 7997e5fccf8cfdc_21 |
| Total unit costs | $fill in the blank 7997e5fccf8cfdc_22 | $fill in the blank 7997e5fccf8cfdc_23 | $fill in the blank 7997e5fccf8cfdc_24 |
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
