QUESTION $20$

If jobs have been undercosted due to underallocation of manufacturing overhead, then Cost of Goods Sold $($COGS$)$ is too low and which of the following corrections must

be made?

Increase COGS for double the amount of the underallocation

Decrease COGS for double the amount of the underallocation

Decrease COGS for the amount of the underallocation

Increase COGS for the amount of the underallocation