·Tesla Motors operates two production departments: Gigafactory and Vehicle Assembly. The Gigafactory incurred direct materials costs of $80,000 and direct labor costs of $60,000 in June. The Vehicle 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 Gigafactory and $50,000 for the Vehicle 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 Gigafactory and direct labor hours for the Vehicle Assembly Department. Discuss the advantages and disadvantages of allocating costs using different allocation bases.