The actual total expenditure of a light engineering factory was Rs. 6,75,912. Overheads were recorded at the rate of Rs. 2 per hour at normal capacity of the factory. Out of 10,000 units produced, only 8,000 units were sold. 500 units were in work in progress. Actual hours worked were 2,84,756. Sixty per cent of the difference between the actual and applied overheads was due to fluctuations in material prices and labour rates. There was a fire in the factory during this accounting period and the company lost Rs. 50,000 of which the buildings accounted for Rs. 30,000 and the balance represented loss of materials stored in the godown. A sum of Rs. 10,000 was paid as wages to workmen during the strike period. The balance amount represented the difference between the actual and applied overheads due to operational efficiency or inefficiency.

Calculate the under/over absorption of production overheads for the period and state the appropriate treatment in cost accounts.