Using the following date relating to ABC Ltd, you are required to treat the under-noted unabsorbed overhead in the cost accounts.
Actual factory overhead
Actual production (units)
Sales during the period (units)
Semi-finished product ( 50% complete) units
Factory overhead is absorbed at the rate of Rs. 20 per man-day. It is found that 50% of the unabsorbed overhead is due to the increase in the overhead and the rest is due to a wrong estimation of output at the time of determination of the overhead absorption rate.
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