Specific order/job order Costing (Marks 5) Q2. 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: Cutting shop Assembly shop Spraying shop Finishing shop Amount in Rs 36,250 4,755 670 7,900 Overheads have been debited to jobs as follows: Cutting 1.30 per machine-hour for 22,000 hours. Assembly 140% ofdirect 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. Page 5 of 6