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Keene Company allocates overhead based on direct labor hours. It allocates overhead costs of $8,000 to two different jobs as follows: Job 1 (10 hours)

Keene Company allocates overhead based on direct labor hours. It allocates overhead costs of $8,000 to two different jobs as follows: Job 1 (10 hours) = $4,000, Job 2 (10 hours) = $4.000 The production process for Job 2 was then automated. Now Job 2 requires only two hours of direct labor but four hours of mechanical processing. As a result, total overhead increased to $12,000 How much overhead cost will be assigned to Job 1 after automation? Multiple Choice O O $2,000 $4,000 $6,000 $10,000
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