Boeing Company manufactures aircraft using job costing. In September 2033, the company undertakes a contract to build a new model aircraft with the following costs:

• Direct Materials: $10,000,000
• Direct Labor: $8,000,000
• Factory Overhead: $5,000,000

Additional information:

• Overhead is allocated based on two cost drivers: machine hours and direct labor hours. Machine hours for the project are 20,000 hours, and direct labor hours are 25,000 hours.
• Overhead allocation rates: $100 per machine hour and $80 per direct labor hour.

Required:

• Calculate the total cost for the project using both cost drivers.
• Allocate overhead costs to the project based on machine hours and direct labor hours.
• Analyze how different allocation methods impact project cost and profitability.