Under-recovery of overheads occurs when:

Select one:

A. The basis of allocating overheads has increased in relation to what they were expected to be

B. The overhead absorbed is higher than the actual overhead incurred.

C. The actual overhead incurred is less than the overhead that has been charged to production.

D. The basis of allocating overheads has fallen in relation to what they were expected to be

E. Actual overheads have fallen in relation to what they were expected to be.