Riskless Insurance Sdn. Bhd. uses budgets to forecast and monitor overhead throughout the organization. The following budget formula relates to the processing of applications for automobile policies in any given month:

Total overhead = RM6.80APH + RM13,500 where

APH = application processing hours

The typical automobile insurance policy has an estimated processing time of 1.5 hours.

During June, management originally anticipated that 320 applications would be processed. Activity was lower than expected, with only 280 applications completed by month-end, and the following costs were incurred: variable overhead, RM2,950; fixed overhead, RM13,700.

Required:

(a) Calculate volume level of applications and processing hours would have been used if the company had constructed a static budget.