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 $17 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $291,700 Benefits 66,300 Supplies 35,400 Office expenses 44,200 Office depreciation 39,800 Computer depreciation 26,500 Total $503,900 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. Question Content Area a. Prepare a differential analysis dated February 22 to determine whether TAG-D should layout pages internally (Alternative 1) or purchase layout services from the outside (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 Effect on Income (Alternative 2) Sales price $fill in the blank bb460e006fdb06e_1 $fill in the blank bb460e006fdb06e_2 $fill in the blank bb460e006fdb06e_3 Costs: Purchase price of lay out work $fill in the blank bb460e006fdb06e_4 $fill in the blank bb460e006fdb06e_5 $fill in the blank bb460e006fdb06e_6 Salaries fill in the blank bb460e006fdb06e_7 fill in the blank bb460e006fdb06e_8 fill in the blank bb460e006fdb06e_9 Benefits fill in the blank bb460e006fdb06e_10 fill in the blank bb460e006fdb06e_11 fill in the blank bb460e006fdb06e_12 Supplies fill in the blank bb460e006fdb06e_13 fill in the blank bb460e006fdb06e_14 fill in the blank bb460e006fdb06e_15 Office expenses fill in the blank bb460e006fdb06e_16 fill in the blank bb460e006fdb06e_17 fill in the blank bb460e006fdb06e_18 Office depreciation fill in the blank bb460e006fdb06e_19 fill in the blank bb460e006fdb06e_20 fill in the blank bb460e006fdb06e_21 Computer depreciation fill in the blank bb460e006fdb06e_22 fill in the blank bb460e006fdb06e_23 fill in the blank bb460e006fdb06e_24 Income (loss) $fill in the blank bb460e006fdb06e_25 $fill in the blank bb460e006fdb06e_26 $fill in the blank bb460e006fdb06e_27
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 $17 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $291,700 Benefits 66,300 Supplies 35,400 Office expenses 44,200 Office depreciation 39,800 Computer depreciation 26,500 Total $503,900 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. Question Content Area a. Prepare a differential analysis dated February 22 to determine whether TAG-D should layout pages internally (Alternative 1) or purchase layout services from the outside (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 Effect on Income (Alternative 2) Sales price $fill in the blank bb460e006fdb06e_1 $fill in the blank bb460e006fdb06e_2 $fill in the blank bb460e006fdb06e_3 Costs: Purchase price of lay out work $fill in the blank bb460e006fdb06e_4 $fill in the blank bb460e006fdb06e_5 $fill in the blank bb460e006fdb06e_6 Salaries fill in the blank bb460e006fdb06e_7 fill in the blank bb460e006fdb06e_8 fill in the blank bb460e006fdb06e_9 Benefits fill in the blank bb460e006fdb06e_10 fill in the blank bb460e006fdb06e_11 fill in the blank bb460e006fdb06e_12 Supplies fill in the blank bb460e006fdb06e_13 fill in the blank bb460e006fdb06e_14 fill in the blank bb460e006fdb06e_15 Office expenses fill in the blank bb460e006fdb06e_16 fill in the blank bb460e006fdb06e_17 fill in the blank bb460e006fdb06e_18 Office depreciation fill in the blank bb460e006fdb06e_19 fill in the blank bb460e006fdb06e_20 fill in the blank bb460e006fdb06e_21 Computer depreciation fill in the blank bb460e006fdb06e_22 fill in the blank bb460e006fdb06e_23 fill in the blank bb460e006fdb06e_24 Income (loss) $fill in the blank bb460e006fdb06e_25 $fill in the blank bb460e006fdb06e_26 $fill in the blank bb460e006fdb06e_27
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Question
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 $17 per layout page. The budget for the Publication Department for the current year is as follows:
| Salaries | $291,700 |
| Benefits | 66,300 |
| Supplies | 35,400 |
| Office expenses | 44,200 |
| Office |
39,800 |
| Computer depreciation | 26,500 |
| Total | $503,900 |
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.
Question Content Area
a. Prepare a differential analysis dated February 22 to determine whether TAG-D should layout pages internally (Alternative 1) or purchase layout services from the outside (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 Effect on Income (Alternative 2) |
|
| Sales price | $fill in the blank bb460e006fdb06e_1 | $fill in the blank bb460e006fdb06e_2 | $fill in the blank bb460e006fdb06e_3 |
| Costs: | |||
| Purchase price of lay out work | $fill in the blank bb460e006fdb06e_4 | $fill in the blank bb460e006fdb06e_5 | $fill in the blank bb460e006fdb06e_6 |
| Salaries | fill in the blank bb460e006fdb06e_7 | fill in the blank bb460e006fdb06e_8 | fill in the blank bb460e006fdb06e_9 |
| Benefits | fill in the blank bb460e006fdb06e_10 | fill in the blank bb460e006fdb06e_11 | fill in the blank bb460e006fdb06e_12 |
| Supplies | fill in the blank bb460e006fdb06e_13 | fill in the blank bb460e006fdb06e_14 | fill in the blank bb460e006fdb06e_15 |
| Office expenses | fill in the blank bb460e006fdb06e_16 | fill in the blank bb460e006fdb06e_17 | fill in the blank bb460e006fdb06e_18 |
| Office depreciation | fill in the blank bb460e006fdb06e_19 | fill in the blank bb460e006fdb06e_20 | fill in the blank bb460e006fdb06e_21 |
| Computer depreciation | fill in the blank bb460e006fdb06e_22 | fill in the blank bb460e006fdb06e_23 | fill in the blank bb460e006fdb06e_24 |
| Income (loss) | $fill in the blank bb460e006fdb06e_25 | $fill in the blank bb460e006fdb06e_26 | $fill in the blank bb460e006fdb06e_27 |
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