XYZ company uses historical cost system and applies overheads on the basis of predetermined rates. The following data are available from the records of the company for the year that ended on 31 March 2010.

Apply the methods of disposal of under-absorbed overheads and show how they would be apportioned.

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Rs. Manufacturing overhead 8,50,000 Manufacturing overhead absorbed 7,50,000 WIP 2,40,000 Finished goods stock 4,80,000 Cost of goods sold 16,80,000