Using the following budget data for Valley Corporation, which produces only one product, calculate the company's predetermined factory overhead application rate for variable overhead. 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 expenses AO $2.09. BO $2.30 CO $4.73. DO $5.20 11,000 10,000 $1,000 10,000 20,000 30,000 12,000 2.000 5,000
