Allocate overhead costs using direct labor hours and machine hours.

Department	Overhead Costs ($)	Direct Labor Hours	Machine Hours
Department X	$120,000	10,000 hours	5,000 hours
Department Y	$180,000	15,000 hours	7,000 hours

Requirements:

Allocate overhead costs to Department X and Department Y using direct labor hours.

Allocate overhead costs to Department X and Department Y using machine hours.

Discuss the differences in allocation methods and their impact on cost management.