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

Keene Company allocates overhead on the basis of 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?

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