Overallocated and underallocated manufacturing overhead is c

Overallocated and underallocated manufacturing overhead is calculated by comparing allocated manufacturing overhead to actual manufacturing overhead O True O False

Solution

True

As manufacturing overhead is predetermined, there may sometimes be difference in calculated and actually incurred.

Manufacturing Overheads are said to be overallocated when allocated overheads are higher than actual overhead and viceversa for underapplied overheads.