Question

If manufacturing overhead has been underallocated during the period, then which of the following is true?(a) the jobs produced during he period have been overcosted(b) the jobs produced during the period have been undercosted(c) the jobs produced during the period have been costed correctly(d) none of the above

Answer 1

Answer:

The correct answer is B: the jobs produced during the period have been under-costed

Explanation:

Giving the following information:

If manufacturing overhead has been under-allocated during the period, then which of the following is true?

(a) the jobs produced during the period have been over-costed

(b) the jobs produced during the period have been under-costed

(c) the jobs produced during the period have been costed correctly

(d) none of the above

When manufacturing overhead has been under-allocated means that the actual costs incurred where superior that the estimated cost for the period.