Question: 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? $4,000 $6,000 $10,000 $2.000

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