Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 How many standard clerical hours are allowed in July, given actual application activity? Automobile Homeowners Total Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Why would it not be sensible to base the company's flexible budget on the number of applications processed instead of the number of clerical hours allowed? OBasing the flexible budget on the number of applications would give a misleading estimate of overhead costs because different types of applications require different amounts of clerical time. OA flexible budget based on applications processed would ignore xed costs. OA flexible budget based on applications processed would be misleading because variable overhead costs are not related to the number of applications processed. OBasing a exible budget on the number of applications processed is not sensible because the same number of applications mayr not be processed each day. ( Required1 Required3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Construct a formula exible overhead budget for the company. I_I ( Requiredz Required4 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the flexible budget for total overhead cost in July? ( Required 3 Gibralter Insurance Company uses a flexible overhead budget for its applicationprocessing department. The firm offers five types of policies. with the following standard hours allowed for clerical processing. Automobile 1 hour Renter's 1 hour Homeowner's 2 hours Health 2 hours Life 4-hours The following numbers of insurance applications were processed during July. Automobile 388 Renter's 258 Homeowner's 158 Health 458 Life 259 The controller estimates that the variableoverhead rate in the applicationprocessing department is $4.00 per clerical hour, and that fixedoverhead costs will amount to $2,500 per month. Required: 1. How many standard clerical hours are allowed in July, given actual application activity? 2. Why would it not be sensible to base the company's flexible budget on the number of applications processed instead of the number of clerical hours allowed? 3. Construct a formula flexible overhead budget for the company. 4. What is the exible budget for total overhead cost in July