In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as

A. under allocated indirect cost

B. over allocated direct cost

C. over allocated budget

D. under allocated budget

Answer: Option A

Solution(By Examveda Team)

In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as under allocated indirect cost because the allocated amount is less than actual amount.