During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $492,000 of manufacturing overhead costs. Overhead costs have been underallocated.

Name: During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $492,000 of manufacturing overhead costs. Overhead costs have been underallocated.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The company has allocated out less than the actual amount of manufacturing overhead costs incurred, indicating that overhead costs have been underallocated.

During 2012, a Company Incurs $500,000 of Manufacturing Overhead Costs