Question: Max Company allocates overhead based on direct labor hours. It allocates overhead costs of $17.400 to two different jobs as follows: Job 1: (12 hours)
Max Company allocates overhead based on direct labor hours. It allocates overhead costs of $17.400 to two different jobs as follows: Job 1: (12 hours) = $8,700; Job 2: (12 hours) = $8,700 The production process for Job 2 was then automated. Now Job 2 requires only 3 hours of direct labor but 4 hours of mechanical processing. As a result total overhead increases to $22,200. With the change in the production process for Job 2, the amount of overhead assigned to: Multiple Choice Job I will decrease. D cach product will increase och product weder
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