Underallocated manufacturing overhead results when

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Underallocated manufacturing overhead results when O A. actual overhead is greater than expected. OB. production is greater t

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Correct Answer is Option : (D) : Actual overhead is greater than
allocated overhead.

Under allocated manufacturing overhead results when
actual overhead incurred is greater than the allocated
. Allocated overhead is applied on a
pre-determined rate. If actual is more than allocated it is called
under allocated overhead and when actual overhead is less than
allocated overhead then it is called over allocated manufacturing

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