Super Fast Insurance 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 = $8.4APH + $17,500 where APH = application processing hours The typical automobile insurance policy has an estimated processing time of 5.5 hours. During June, management originally anticipated that 480 applications would be processed. Activity was lower than expected, with only 230 applications completed by month-end, and the following costs were incurred: variable overhead, $6,950; fixed overhead, $21,700. Required: A. What volume level of applications and processing hours would have been used if Super Fast had constructed a static

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What volume level of applications and processing hours would have been used if Super Fast had constructed a static budget?

	Static Budget
Applications
Processing hours