The production process for job 1 is automated now job 1


Jones Company allocates overhead on the basis of direct labor hours. It allocates overhead costs of $12,800 to two different jobs as follows: Job 1: (10 hours) = $6,400 Job 2: (10 hours) = $6,400 The production process for Job 1 is automated. Now Job 1 only requires 5 hours of direct labor but 4 hours of mechanical processing. As a result, total overhead increases to $15,000. How much overhead will be assigned to Job 2 after automation?

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Accounting Basics: The production process for job 1 is automated now job 1
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