Can anyone help me about understatement and overstatement ?

If a number is entered lower than it should be, then it is understated. If a number is entered higher than it should be, then it is overstated. So recording 520 when it should be 600 means that at the moment it has been understated.

Wodl Co uses absorption costing and an overhead absorption rate based on machine hours. The following information is available for its Stitching department for February: Budget Actual Overhead costs $16,340 $17,230 Number of machine 4,300 4,250 hours Which of the following statements about overhead absorption in the Stitching department for February are true? Overhead costs were over-absorbed by $203 Overhead costs were under-absorbed by $203 Overhead costs were under-absorbed by $1,080 Overhead costs were over-absorbed by $1,080 Sir, if actual budget is 1080 higher than it should be why over-absorbed 1080 is wrong Sorry sir i am huge confused about that even in Finanacial Accounting I'm getting wrong attemp in overstated and understated question in Asset Expenditure and Expenses

The amount that has been absorbed (i.e. charged) using absorption costing is $16,150. The actual overheads are $17,230. Therefore they have under-charged (ie. under -absorbed) by the difference of $1,080. Have you watched our free lectures on absorption costing?