Lockheed Martin Corporation manufactures defense equipment in December 2033. The project costs for a missile system are:

• Direct Materials: $12,000,000
• Direct Labor: $10,000,000
• Factory Overhead: $6,000,000

Additional information:

• Overhead is allocated based on machine hours and direct labor hours.
• Machine hours: 20,000 hours, Direct labor hours: 15,000 hours.
• Overhead rates: $300 per machine hour, $200 per direct labor hour.

Required:

• Calculate the total cost for the missile system project.
• Allocate overhead costs using machine hours and direct labor hours.
• Analyze how allocation methods affect project cost.