6 Gregory Company allocates Overhead based on direct labor hours. It allocates avarhend costs of $16,200 to two different jobs as follows: Job t 12 hours) = $8,100; Job 2: (12 hours) = $8,100 The production process for Job 2 was then automated. Now Job 2 requires only 3 hours of direct labor but 5 hours of mechanical processing. As a result, total overhead increases to $21.000. Select the incorrect staternent from the following. point Multiple Choice ( 04009 O While the actual processing of Joh 1 was not affected by automation, it received an increase of $8.700 in its overhead allocation Hierok O The use of machine hours as the allocation base would significantly improve the overhead cast a locations O Automation and the casting system used by the company cause the cost of Job 11o be significantly overstated O The increased averhead costs associated with automation should be allocated to both jabs