PLEASE SOLVE ALL 4 SUBPARTS!

Gibralter Insurance Company uses a flexible overhead budget for its application-processing 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 5 hours The following numbers of insurance applications were processed during July. Automobile 440 Renter's 390 Homeowner's 290 Health 590 Life 390 The controller estimates that the variable-overhead rate in the application-processing department is $3.00 per clerical hour, and that fixed-overhead costs will amount to $3,900 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 companys 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 flexible budget for total overhead cost in July?