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

A$2.09.

B$2.30.

C$4.73.

D$5.20.