Taylor Manufacturing Company has four (4) departments namely, Molding and Decorating for producing departments, Buildings, Grounds and Factory Administration departments as supporting departments. Building & Grounds cost will be allocated using the floor area (square feet) while for Factory Administration cost will be allocated using direct labor hours. Machine hours is used as the base for Molding department and for Decorating department, the direct labor hours are used for the computation of predetermined overhead rates. Molding Decorating Building and Factory Grounds Administration Budgeted MOH Direct Labor Hours 285,000.00 525,000.00 # 33,500.00 P 72,250.00 168,000.00 66,000.00 Floor Area Machine Hours 33,550.00 18,275.00 2,500 5,350.00 201,500.00 64,300.00 QUIZ: Compute OH rate using Direct and Step methods