Acela Partners uses absorption costing based on standard costs and reports the following data for 2007 Theoretical capacity Practical capacity Normal capacity utilisation Selling price Beginning inventory Production Sales volume Variable budgeted manufacturing cost Total budgeted fixed manufacturing costs Total budgeted operating costs (all fixed) 360 000 units 300 000 units 240 000 units R30 per unit 25 000 units 260 000 units 280 000 units R3 per unit R3 600 000 R1 000 000 The production-volume variance is written off to cost of sales. For each choice the denominator level the budgeted production cost per unit is also the cost per unit of beginning inventory Required: Calculate the production-volume variance in 2007and indicate its effect on COGS when the denominator level is Theoretical capacity b. Practical capacity Normal capacity utilisation