using two methods of disposal of under absorbed overheads show the implication on th 666304

XYZ Ltd., uses a historical cost accounting system and absorbs overheads on the basis of predetermined rates. The following data are available for the year ended 31st March, 2007.

Particulars	Amount in Rupees
Manufacturing overheads
Amount actually spent	1,70,000
Amount absorbed	1,50,000
Cost of goods sold	3,36,000
Stock of finished goods	96,000
Work in progress	48,000

Using two methods of disposal of under/absorbed overheads show the implication on the profits of the company under each method.