Question: Morris Company allocates overhead based on direct labor hours. It allocates overhead costs of $13,800 to two different jobs as follows: Job 1: (10 hours)

Morris Company allocates overhead based on direct labor hours. It allocates overhead costs of $13,800 to two different jobs as follows: Job 1: (10 hours) = $6,900; Job 2: (10 hours) = $6,900 The production process for Job 2 was then automated. Now Job 2 requires only 2 hours of direct labor but 4 hours of mechanical processing. As a result, total overhead increases to $18,600. With the change in the production process for Job 2, the amount of overhead assigned to:

A. each product will increase.

B. Job 1 will decrease

C. each product will decrease

D. Job 1 will increase

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