Overallocated indirect costs

Overallocated indirect costs is allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period. Also called overapplied indirect costs and overabsorbed indirect costs.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Overallocated indirect costs. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period. Also called overapplied indirect costs and overabsorbed indirect costs.