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. Construct a flexible budget that shows the expected monthly variable and fixed overhead costs of processing 350, 380, and 410

C. From a cost perspective, did the company perform better or worse than anticipated in June?