When the allocated amount of indirect costs are less than the actual amount, indirect costs have been . A. overallocated B. perfectly allocated C. underallocated D. within budget

C. underallocated

Explanation:

Underallocated amount is that which did not match the actual overhead incurred and it is lower than the actual. While budgeting the estimated overheads are allocated to different departments / products using different basis. Total allocated amount then compared with the actual overheads incurred. Which ultimately result in under / over allocated overhead.

answer; the above statement is (true);

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