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The controller estimates that the variable-overhead rate in the application-processing department is $4.00 per clerical hour, and that fixed-overhead costs will amount to $2,000 per

The controller estimates that the variable-overhead rate in the application-processing department is $4.00 per clerical hour, and that fixed-overhead costs will amount to $2,000 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?

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