From Q1 only answer C please, thank you.

Q1) The accountant for Kadhim Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected:

Support DepartmentsOperating Departments

MaintenanceCafeteriaCutting Packaging

Direct costsSAR50,000SAR45,000 SAR275,000 SAR300,000

Number of employees1510150 250

Square feet1,5002,0003,500 4,000

A. If the direct method is used, calculate maintenance costs allocated to the cutting department?

B. If the direct method is used, calculate the total cost (including allocations) for the

packaging department?

C. Assume you are working for the organization and are requested to allocate support department costs. Describe how you would choose the best method?

Q3) In a recent accounting period, Ismail Company experienced a SAR30,000 unfavorable variance for variable production costs. Explain the meaning of an unfavorable variance. Suggest two possible?

Q4) How are budgets related to organizational strategies?