Accounting

A cost centre in a factory furnished the following working conditions : Normal working hours 40 hours per week Normal weekly loss of hours (due to maintenance) 4 hours per machine Number of machines worked 15 Estimated annual overhead *1,55,520 Estimated direct wage rate 3 per hour Number of weeks worked per year 48 weeks Actual results in respect of a 4 week period are : Overhead incurred 315,000 Wages incurred *7,000 Machine hours operated 2,200 hours You are required to : (a) Calculate the overhead rate per machine hour. (b) Calculate the amount of under/over absorption of both wages and overhead