4.The personnel department at Hudson Company has $45,000 in budgeted costs for the coming period.Hudson is trying to determine whether to allocate these costs to the two production departments based on the number of employees or on machine hours used in the department.Information about the production departments is given below:

Department ADepartment B

Number of employees 15 35

Anticipated machine hours600400

What are the costs allocated to each of the production departments? Which allocation base is preferable?