Bates Company makes two products. Product X requires 6700 hours of labor, and Product requires 4700 hours of labor. Bates undertook an automation program that reduced the consumption of labor required by Product X to only 2700 hours of labor. Product Y was not affected by the automation process. Overhead cost prior to the automation totaled $13,680. After automation, overhead cost amounted to $29,600. Assuming Bates uses direct labor hours as a companywide allocation base before and after the automation, the amount of overhead cost allocated to: O Product X would be $8040 prior to automation and $18,800 after automation Product X would be $5640 prior to automation and $18,800 after automation. O Product would be $5640 prior to automation and $18,800 after automation. o Product Y would be $10,800 prior to automation and $18,800 after automation D Question 15 6 pts Hazel Company allocates overhead based on direct labor hours. It allocates overhead costs of $14,400 to two different jobs as follows: Job 1: (10 hours) = $7200; Job 2: (10 hours) - $7200 The production process for Job 2 was then automated. Now Job 2 requires only 2 hours of direct labor but 4 hours of mechanical processing. As a result, total overhead increases to $19,800. Select the incorrect statement from the following. Automation and the costing system used by the company cause the cost of Job 1 to be significantly overstated. The increased overhead costs associated with automation should be allocated to both jobs. While the actual processing of Job I was not affected by automation, it received an increase of $9300 in its overhead allocation The use of machine hours as the allocation base would significantly improve the overhead cost allocations o BI SS Pll