The personnel department at a Company has $45,000 in budgeted costs for the coming period. They are trying to determine whether to allocate these costs to the two production departments based on the number of employees or on machine hours used in the department. Information about the production departments is given below:

	Department C	Department D
Number of employees	15	35
Anticipated machine hours	600	400

Calculate the costs allocated to each of the production departments using each allocation base. Comment on which allocation base is preferable.