Custom Couches (Pty) Ltd uses a job costing system to manufacture various types of couches for their customers. Manufacturing overheads are allocated to jobs on the basis of a predetermined rate i.e., it is based on direct labour hours. The budgeted manufacturing overheads for the period (November 2022) were R108 000 and the anticipated direct labour hours for the same period were estimated to be 160 hours. The organisation records under- or over-absorbed overheads in the cost of sales account. On 1 November 2022, the general ledger of the company indicated the following: The following occurred during the month of November 2022: - Job Z was started during the month and is still in progress at the end of the month. - Job Y was completed during the month (Job Y was still in progress at the beginning of the month). - Job X was invoiced to a customer at a profit of 30% of the cost. - Raw material purchases amounted to R75 000 and were all purchased on credit. - Raw materials were issued as follows: - Job Y: R20 000 - Job Z: R40 000 - Indirect raw material was R7 000 - Labour costs were as follows: - Direct labour on Job Y (36 hours): R3 600 - Direct labour on Job Z (120 hours): R11 400 - Indirect labour: R5 500 - Other costs incurred during the month: - Rent of the factory premises: R50 000 - Depreciation of manufacturing machines: R44 000 - Selling and administration costs: R13 000