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Aaron Company makes two products. Product X requires 4,000 hours of labor, and Product Y requires 6,000 hours of labor. Aaron undertook an automation program that reduced the consumption of labor required by Product Y to only 2,000 hours of labor. Product X was not affected by the automation process. Overhead cost prior to the automation totaled $10,000. After automation, overhead cost amounted to $24,000. Assuming Aaron uses direct labor hours as a company-wide allocation base before and after the automation, the amount of overhead cost allocated to:

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Accounting Basics, Accounting

Category:- Accounting Basics
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