h-4 to h-1 while I-94 is expired

[pat87]

Hello Everyone,

Currently my h-1b Extension is in progress and i have received RFE, My I-94 has been already expired.

My wife had valid h-1 but currently she is on h-4 dependent on my h-1b and her h-4 Extension is in progress and H-4 EAD has been filed too.(She still has 5 years of H-1b Left), Her i-94 is expired too.

my Question is : 

1) Can she file h-4 to h-1 while her I-94 is expired ?

2) Is it recommended to file her h-1 at this point of time specially while my employer is replying to my H-1B RFE 

thanks,

Pat