Based on what I just read, Jerry was using the factory workers' time sheets as a cost driver to allocate overhead. The government considers Jerry's actions fraudulent because he knowingly altered the factory worker's time sheets which is an overallocation of overhead. Altering time sheets is dishonest, especially when it results in the company obtaining more money from the government than it should. One way to reduce the cost of civilian contracts that will benefit the company is to allocate a higher quantity of hours, which makes higher overhead costs that can be written off as an exemption to get more money from the Government. Another way to reduce the cost of civilian contracts is by using a predetermining overhead rate and failing to make the proper adjustments at the end of the period