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 11,000 Units to be sold 10,000 Indirect materials, varying with production $ 1,000. Indirect labor, varying with production 10,000. Factory supervisor's salary, incurred regardless of production 20,000. Depreciation on factory building and equipment 30,000. Utilities to operate factory machines 12,000. Security lighting for factory 2,000. Selling, general and administrative expenses 5,000, calcuate the factory overhead application rate for variable overhead