22.

Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 200 employees and occupies 49,000 square feet; Painting has 150 employees and occupies 35,000 square feet. Indirect factory expenses for the current period are as follows:

Administration	$85,000
Maintenance	$114,000

Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of indirect factory expenses that should be allocated to the Assembly Department for the current period is (Do not round your intermediate calculations and round your final answer to the nearest whole dollar amount):

$115,071.

$66,500.

$48,571.

$116,071.

$124,000.

23.

In a responsibility accounting system:

Managers are responsible for their departments' controllable costs.

Each accounting report contains all items allocated to a responsibility center.

Organized and clear lines of authority and responsibility are only incidental.

All managers at a given level have equal authority and responsibility.

Outputs of the departments are not part of the evaluation process.

26.

Factor Co. can produce a unit of product for the following costs:

Direct material	$7.50
Direct labor	23.50
Overhead	37.50
Total costs per unit	$68.50

An outside supplier offers to provide Factor with all the units it needs at $44.00 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to:

Buy since the relevant cost to make it is $53.50.

Make since the relevant cost to make it is $46.00.

Buy since the relevant cost to make it is $46.00.

Make since the relevant cost to make it is $31.00.

Buy since the relevant cost to make it is $31.00.