Gibralter Insurance Company uses a flexible overhead budget for its application-processing department. The firm offers five types of policies, with the following standard hours allowed for clerical processing" Automobile……………………………………………………1hr. Renter’s………………………………………………………..1 hr. Homeowner’s ………………………………………………….2 hrs. Health…………………………………………………………..2 hrs. Life……………………………………………………………..5 hrs. The following numbers of insurance applications were processed during July. Automobile………………………………………………………250 Renter’s …………………………………………………………..200 Homeowner’s……………………………………………………..100 Health……………………………………………………………..400 Life……………………………………………………………….200
Gibralter Insurance Company uses a flexible overhead budget for its application-processing department. The firm offers five types of policies, with the following standard hours allowed for clerical processing"
Automobile……………………………………………………1hr.
Renter’s………………………………………………………..1 hr.
Homeowner’s ………………………………………………….2 hrs.
Health…………………………………………………………..2 hrs.
Life……………………………………………………………..5 hrs.
The following numbers of insurance applications were processed during July.
Automobile………………………………………………………250
Renter’s …………………………………………………………..200
Homeowner’s……………………………………………………..100
Health……………………………………………………………..400
Life……………………………………………………………….200
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.
What is the flexible budget for total overhead cost in July"
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