1. Calculate an overhead absorption rate for each process.
2. Use process accounts to calculate the cost of the order processed during March.
3. Prepare the abnormal gain account.
4. Given that the actual overheads incurred in processing department W turn out to be $350,000 and the actual processing hours worked 3,500, whilst the actual overheads incurred for processing department X turn out to be $165,000 and actual processing hours 3,000, calculate the under- or over- recovery of overheads for each department.