Part AQ$1.$ Terry Rigapp, new$-$eccounts manager at East Bank of Clarion, has been asked to project how many new accounts she will open during $20$x$2.$ The local economy has ben growing, and the bank bas experitoced o $10\%$ increase in the number of now accounts ovar each of the past five years. In $20$x$1,$ the bank had $10,000$ accounts.Pipapo, is paid a salary, plas a bonus of $$20$ for every new account above the budgeted amount. Thus, if the annual budget calls for $1,000$ new ascounts, and $1,080$ new accounts are Obtamed, her bonus will be $$1,600(80520).$Pingog belioves that the local economy will continue to grow at the same rate in $20$x$2$ as it has in recent years. She decided to subrnit a projection of $800$ new accounts for $20$x$2.$Required:Your consulting fin has been hired by the bank president to make recommendations for improving the bank's operation. Write a small note $(10$ lines Max$)$ to the president defining and explaining the negative consequences of bodgetary slack. Also discuss the bank's bonus systan for the new$-$accounts manager and how the bonus program tends to encourage budgetary slack. $(4$ marks$)(5$ min$)$Q$2.$ Generally, companies follow one of two broad cost strategies; offering a quality product at a low price, or offering a mique product or service priced higher than the competition. Is it possible to follow a strategy that is $"$in the middle"? $(4$ marks$)($Max $5$ lines$)(5$ min$)$Q$3.$ Why do organizations use budgetod rates instead of actual rates to allocate the costs of support departments to each other and to user departments and divisions? Explain $(4$ marks$)($max $5$ lnes$)(5$ min$)$ Q$4.$ Harris, Inc., has just completed two jobs: Job A and Job B$,$ which were similar in terms of complexity, production processes, and units manufactured. Job A was manufactured by Joe who cams Rs$.14$ per hour, whereas Job B was completed by Susan who earns Rs$.20$ per hour. If Joe and Susan are equally efficient, would the company be better off using direct labor cost or direct labor hours as the cost driver in its predetermined overhcad rate? Bricfly explain. $(4$ marks$)($Max $5$ Ines$)(5$ min$)$Q$5.$ In discussing the opcration of her automobile, a doctor once observed that gasolime is a fixed cost because the cost per gallon is relatively stable. Insurance, on the other hand, is a variable cost because the cost per mile varies inversely with the number of miles driven. Do you agree with the doctor's observations? Give your reasons for yes$/$no$.(4$ marks$)($Max $5$ lines$)(5$ min$)06.$ Madi Corporation has a single facility that it uses for manufacturing, sales, and administrative activities. Should the company's building depreciation charge be expensed in its entirety or is a different accounting procedure appropriate? Think in different types of cost$.$ Explain. $(4$ marks$)($Max $5$ Hacs$)(5$ min$)$