Rolex Ltd planned to produce 500,000 units for the coming year using 120,000 labour hours. Planned fixed overhead costs amount to $420,000 and overhead is absorbed on a labour hour basis.

Determine the fixed overhead over or under absorbed in each of the following situations:

1. The company produced 480,000 units but used 125,000 labour hours; and fixed overhead cost was as planned.

2. The activity level was as planned but actual overhead cost incurred was $385,000.

3. The company produced 510,000 units and used 118,000 hours. The actual fixed overhead costs incurred amounted to $465,000.