11 Pane Question 4 (30 Marks) Part I One of the behavioral considerations associated with the budgeting process relates to the difficulty level embodied in the budget (1.e., how difficult or easy it is to achieve budgeted results). Required: a. Explain the negative consequences of budgetary targets that are too easy or too difficult to achieve. (7 marks) b. What is meant by the term "highly achievable (budget) target"? (6 marks) c. What are the primary advantages of using "highly achievable targets" in terms of budgetary expectations? (7 marks) Part II d. Taper University offers only high-tech graduate-level programs. Taper has two principal operating departments, Commerce and Social Sciences, and two support departments, Facility and Technology Maintenance and Enrollment Services. The base used to allocate facility and technology maintenance is budgeted total maintenance hours. The base used to allocate enrollment services is number of credit hours for a department. The Facility and Technology Maintenance budget is $500,000, while the Enrollment Services budget is $900,000. The following chart summarizes budgeted amounts and allocation-base amounts used by each department: Services Provided: (Annually) Enrollment Budget Commerce Social Sciences F&T Maintenance Service F&T Maintenance $500,000 3,000 6,000 Zero 5,000 Kin hours) Enrollment Service $900,000 25,000 35,000 2,000 Zero (in credit hrs) Required: Prepare a schedule which allocates service department costs using the step-down method with the sequence of allocation based on the highest-percentage support concept. Compute the total amount of support costs allocated to each of the two principal operating departments, Commerce and Social Sciences. (10 marks)