2. Abacus Manufacturing Co. operates two production departments: Cutting and Assembly. The Cutting Department incurred direct materials costs of $80,000 and direct labor costs of $60,000 in June. The Assembly Department incurred direct materials costs of $100,000 and direct labor costs of $75,000 in the same period. Factory overhead costs were $40,000 for the Cutting Department and $50,000 for the Assembly Department. Calculate the total manufacturing costs for each department, and then allocate these costs to the units produced based on machine hours for the Cutting Department and direct labor hours for the Assembly Department. Discuss the advantages and disadvantages of allocating costs using different allocation bases.