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Manufacturing overhead is underallocated if the amount:

a. estimated for the period is less than the actual amount incurred.

b. allocated during the period is greater than the actual amount incurred.

c. estimated for the period is greater than the actual amount incurred.

d. allocated during the period is less than the actual amount incurred.

Question

Manuel

Business

28 August, 01:02

This problem has been solved!

See the answer

Manufacturing overhead is underallocated if the amount:

a. estimated for the period is less than the actual amount incurred.

b. allocated during the period is greater than the actual amount incurred.

c. estimated for the period is greater than the actual amount incurred.

d. allocated during the period is less than the actual amount incurred.

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Answers (1)

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Marie Abbott · Answer 1

D allocated during the period is less than the actual amount incurred

Explanation:

Manufacturing overhead is under allocated if the amount allocated during the period is less than the actual amount incurred. The company is under deficit of capital which cause the company a loss. This loss may occur due to shortage of capital. Therefore option D allocated during the period is less than the actual amount incurred is correct.