The Ladyfinger Manufacturing Company has two production departments (fabrication and assembly) and three service departments (factory administration, factory maintenance, and factory cafeteria). A summary of costs and other data for each department prior to allocation of service department costs for the year ended June 30, 2011, appears below. The costs of the factory administration department, factory maintenance department, and factory cafeteria department are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. Factory Factory Fabrication Actual Direct Labor Costs Actual Direct Materials Costs 950,000 Assembly Administration Maintenance P1,950,000 P2,050,000 3,130,000 Factory Cafeteria Estimated Factory OH Costs Before allocation 1,650,000 Direct labor hours Number of employees Square footage occupied 562,500 280 88,000 1,850,000 437,500 P160,000 P203,200 P240,000 200 72,000 31,000 12 27,000 8 42,000 20 1,750 2,000 4,800 Assuming that Ladyfinger elects to distribute service department costs to other service departments, as well as the production departments (starting with the service department with the greatest total costs), determine the applied factory overhead rate of Fabrication Department using direct labor hours of 562,500 as the basis.