accounting for overheads

The actual overheads will be debited to the overheads account. Then we credit overheads and debit the production account with the amount absorbed at the standard rate. The difference on the overheads account is the over or under absorption. If there is an over absorption then we debit the overheads account (which clears the balance) and credit the profit statement. (The double entries are of very little relevance for the F2 exam these days - questions are much more likely to be checking that you are able to calculate the over or under absorption, and that you understand what it is.)