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Kyoto Company allocates overhead on the basis of direct labor hours. It allocates overhead costs of $4,800 to two different jobs as follows: Job 1:
Kyoto Company allocates overhead on the basis of direct labor hours. It allocates overhead costs of $4,800 to two different jobs as follows: Job 1: (9 hours) = $2,400; Job 2: (9 hours) = $2,400 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 $7,007. How much overhead cost will be assigned to Job 1 after automation?
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