_________ is the amount by which the absorbed overheads fall short of the actual amount of overheads incurred.
A
Over absorption of overheads
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B
Under absorption of overheads
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C
Overheads absorption
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D
None of these
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Solution
The correct option is B Under absorption of overheads If overheads is under absorbed that means more actual overheads cost were incurred than the expected overheads. The difference being charged to expense account