Saved Help Save & Exit Submit 13 Dreamy Company uses direct labor hours to allocate overhead to all of its jobs. It allocates overhead costs of $14,400 to two different jobs as follows: Job 1: (10 hours) = $7,200; Job 2: (10 hours) = $7,200 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 $19,800. Select the incorrect statement from the following. 4 points 00:55:09 Multiple Choice O While the actual processing of Job 1 was not affected by automation, it received an increase of $9,300 in its overhead allocation. O The increased overhead costs associated with automation should be allocated to both jobs. O The use of machine hours as the allocation base would significantly improve the overhead cost allocations. O Automation and the costing system used by the company cause the cost of Job 1 to be significantly overstated