Allocate overhead costs using direct labor hours and machine hours.

Department	Overhead Costs ($)	Direct Labor Hours	Machine Hours
Department X	$150,000	12,000 hours	6,000 hours
Department Y	$200,000	15,000 hours	7,500 hours

Requirements:

Allocate overhead costs to Department X and Department Y using direct labor hours.

Allocate overhead costs to Department X and Department Y using machine hours.

Discuss the differences in allocation methods and their impact on cost management and decision-making.

Recommend a more accurate method for overhead allocation in this manufacturing context.