A Ltd. employs a job-order costing system. The factory expenses incurred in the month of March of the current year (as shown by the factory overhead control account) are: Amount in Rs. Cutting shop 36,250 Assembly shop 4,755 Spraying shop 670 Finishing shop 7,900

Overheads have been debited to jobs as follows: Cutting 1.30 per machine-hour for 22,000 hours. Assembly 140% of direct labor cost. Direct labor cost is Rs. 3,300 Spraying Rs. 0.60 per piece for 925 pieces. Finishing Rs. 0.75 per direct labor-hour for 11,000 hours All expenses are charged to a factory overhead control account and are transferred from this account at the end of each month to the departmental overhead account. You are required to (a) record the necessary journal entries for factory overhead incurred and absorbed and (b) state the amount of over- or under-absorption of overhead in each department. Assume that the company maintains both factory ledger and general ledger.