A manufacturing company allocates overhead costs using direct labor hours and machine hours Direct labor hours 25,000, machine hours 15,000, total overhead costs $400,000 Requirements Allocate overhead costs to products using the direct labor hours method Allocate overhead costs to products using the machine hours method Compare the results of both allocation methods Discuss the advantages and disadvantages of each allocation method

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Question: A manufacturing company allocates overhead costs using direct labor hours and machine hours: Direct labor hours 25,000, machine hours 15,000, total overhead costs $400,000. Requirements:

A manufacturing company allocates overhead costs using direct labor hours and machine hours: Direct labor hours 25,000, machine hours 15,000, total overhead costs $400,000.

Requirements:
- Allocate overhead costs to products using the direct labor hours method.
- Allocate overhead costs to products using the machine hours method.
- Compare the results of both allocation methods.
- Discuss the advantages and disadvantages of each allocation method.

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