"Politics had absolutely nothing to do with it -- we have actors on our shows who have all sorts of different political views," Dungey said to The Wrap Sunday during the Television Critics Association's summer press tour.
"Tim Allen is a valuable part of the Disney ABC family and has been for a very, very long time," she continued.
"'Last Man Standing' was a show that, several years running, kind of came up to the very end in terms of the renewal, which was the same case this year."
"Last Man Standing," which starred Allen in the lead role, was canceled by ABC in May after six seasons.
The actor previously stated that he was "stunned and blindsided," by the network's decision.
Following the news, fans of the sitcom wondered if Allen's outspoken political views could have led to the cancellation.
The comedian notably attended President Donald Trump's inauguration and previously stated on "Jimmy Kimmel Live" that it wasn't easy to express his conservative views in Hollywood.
"You've gotta be real careful around here," Allen said at the time.
"This is like '30s Germany. I don't know what happened. If you're not part of the group, 'You know what we believe is right,' I go, 'Well, I might have a problem with that.'"
"Last Man Standing" featured Allen as a conservative, church-going Colorado man who is married with three adult daughters and in charge of marketing for a chain of outdoor, sporting goods stores.
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