1a.

Costs in Rand
Units 30,000
Production Costs 3420000
Absorption rate 114
Units Produced 6000
Total Fixed Production Overhead 684000
b.
Actual Fixed production overhead 855000
Absorbed fixed production Overhead 684000
Under overhead absorption -171000
Part 2
Cost of goods sold 171000
Manufactured Overhead 171000
Part 3
Absorption costing net income -93000
Deduct fixed manufacturing costs from inventory under absorption 114000
Variable costing net income 21000
c Rand Rand
Sales 1000000
Production Costs 684000
Less closing inventories 228000
Production cost of sales 456000
Adjustment for underapplied 171000
Total Production costs 627000
Gross Profit 373000
Less Sales and distribution 466000
Net Profit -93000
Opening Inventory 1000
Units manufactured 6000
Units sold 5000
Closing inventory 2000
Change in Inventory 1000 114000