Final answer:
The statement provided is false because underapplied indirect costs occur when actual costs exceed the budgeted costs, leading to insufficient allocation, whereas overapplied costs occur when actual costs are less than budgeted.
Step-by-step explanation:
The statement that one reason indirect costs may be underapplied is if actual indirect costs are less than budgeted indirect costs is false. Underapplied indirect costs occur when the actual indirect costs incurred are greater than the amount that was applied or allocated to the goods produced based on the predetermined overhead rate. If actual indirect costs are less than budgeted, this would lead to overapplied indirect costs, not underapplied.