Question: Max Company allocates overhead based on direct labor hours. It allocates overhead costs of $ 1 4 , 4 0 0 to two different

Max Company allocates overhead based on direct labor hours. It allocates overhead costs of \$14,400 to two different jobs as follows:
Job 1: (12 hours)=\$7,200; Job 2: (12 hours)=\$7,200
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 \(\$ 19,500\). With the change in the production process for Job 2, the amount of overhead assigned to:
Multiple Choice
Job 1 will decrease.
each product will increase.
Job 1 will increase.
each product will decrease.
Max Company allocates overhead based on direct

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