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Underallocated overhead occurs when​ ________.a.allocated overhead costs are less than actual overhead costsb.estimated overhead costs are greater than actual overhead costsc.estimated overhead costs are greater than budgeted overhead costsd.actual overhead costs are less than allocated overhead costs

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mooreorlando727

(A) Underallocated overhead occurs when allocated overhead costs are less than actual overhead costs.

In accounting, overhead usually refers to the indirect manufacturing costs, therefore in this instance, the actual manufacturing overhead cost, are more than alloacted manufacturing overhead costs.

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