Standard Costing Good Health Insurance Company uses a flexible overhead budget for its new policy department. The firm offers five types of policy, with the followingstandard hours allowed for pollcy clenical processing: 1 hour 1.5 hours 2 hours 2 hours 5 hours Health Life Renter The following numbers of Insurance applications were processed during April: Health 375 Life 150 Renter Home Owner 300 The accountant estimates that the varlable overhead rate in the application processing department is$10 per hour, and the fed overhead costs will amount to 55,000per month. Required: 1 Calculate the number of standard clerical hours allowed in April, gven the number of 2. Explain why the company's flexible budget should be based on the number of clerical 3. Using Excel, gonstrust a formula flexible overhead budget for the company, and applications processed. hours allowed rather than on the number of applications processed. calculate the flexible budget for total overhead cost in April. Include both the formula vlew and resuits vlewof yourspreadsheet in your Word document. Prepare a short memorandum to the management of Good Health evaluating the benefts that standard costing systems can offer a business. 4