Question: Morris Company allocates overheod based on direct labor hours, it allocates overhead costs of $15,600 to two different jobs as follows: Job:(12hours)=$7,800:Job2:(12hours)=$7,800 The production process
Morris Company allocates overheod based on direct labor hours, it allocates overhead costs of $15,600 to two different jobs as follows: Job:(12hours)=$7,800:Job2:(12hours)=$7,800 The production process for Job 2 was then automated. Now Job 2 requires only three hours of direct labor but five hours of mechanical processing. As a result, total overhead increases to $20,400. With the change in the production process for Job 2 , the amount of overhead assigned to: Multiple Choice each product wilincreose: Job t wit increase. each product will decresse. Job 1 will decrease
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