An undergarment dropped in taste for farce (8)
I believe the answer is:
travesty
'farce' is the definition.
('travesty' can be a synonym of 'farce')
'an undergarment dropped in taste' is the wordplay.
'an' becomes 'a'.
'undergarment' becomes 'vest' (vest is a kind of undergarment).
'dropped in' is an insertion indicator.
'taste' becomes 'try' ('try' can be a synonym of 'taste').
'a'+'vest'='avest'
'avest' placed within 'try' is 'TRAVESTY'.
'for' acts as a link.
(Other definitions for travesty that I've seen before include "Burlesque, mockery" , "Farcical imitation" , "Total misrepresentation" , "Grotesque representation" , "Take off" .)