Using the following date relating to ABC Ltd, you are required to treat the under-noted unabsorbed overhead in the cost accounts.

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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Actual factory overhead Actual man-days Actual production (units) Sales during the period (units) Semi-finished product (50% complete) units = Rs.1,50,000 Rs. 5,000 2,500 1,500 500