Using the following budget data for Valley Corporation, which produces only one product, calculate the company’s predetermined manufacturing overhead application rate for variable overhead. 

a. $2.09

b. $2730

c. $4.73

d. $5.00

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Units to be produced Units to be sold.... Indirect materials, varying with production. Indirect labor, varying with production .. Factory supervisor's salary, incurred regardless of production Depreciation on factory building and equipment Utilities to operate factory machines. Security lighting for factory.. .... Selling, general and administrative (SG&A) expenses. 11,000 10,000 $ 1,000 10,000 20,000 30,000 12,000 2,000 5,000