diff --git a/configure.ac b/configure.ac
index 65c915e6..fd402e20 100644
--- a/configure.ac
+++ b/configure.ac
@@ -20,7 +20,7 @@ AC_SUBST([LIBINPUT_VERSION], [libinput_version])
 AC_CONFIG_HEADERS([config.h])
 AC_CONFIG_MACRO_DIR([m4])
 
-AM_INIT_AUTOMAKE([1.11 foreign no-dist-gzip dist-xz])
+AM_INIT_AUTOMAKE([1.11 foreign no-dist-gzip dist-xz subdir-objects])
 
 # Before making a release, the LIBINPUT_LT_VERSION string should be
 # modified.
diff --git a/test/Makefile.am b/test/Makefile.am
index 16dac419..c3c293a0 100644
--- a/test/Makefile.am
+++ b/test/Makefile.am
@@ -11,8 +11,8 @@ AM_CXXFLAGS = $(GCC_CXXFLAGS)
 TEST_LIBS = liblitest.la $(CHECK_LIBS) $(LIBUDEV_LIBS) $(LIBEVDEV_LIBS) $(top_builddir)/src/libinput.la
 noinst_LTLIBRARIES = liblitest.la
 liblitest_la_SOURCES = \
-	$(top_srcdir)/src/libinput-util.h \
-	$(top_srcdir)/src/libinput-util.c \
+	../src/libinput-util.h \
+	../src/libinput-util.c \
 	litest.h \
 	litest-int.h \
 	litest-bcm5974.c \