Mmaphefo Company is a manufacturing firm that uses the job costing. The company's inventory balances were as follows at the beginning and end of the year: The applies overhead to jobs using a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated that it would work 24000 machine hours and incur R216 000 in the manufacturing overhead cost. The following transactions were recorded for the year. Direct materials were purchased, R434 000. The following labour costs were incurred: direct labour R207 000, indirect labour R79 000, and administrative salaries, R171 000 . Selling costs, R103 000 . Factory utility costs R120 000 . Depreciation for the year was R106 000 of which R97 000 is related to factory operations and R9000 is related to selling and administrative activities. Manufacturing overheads were absorbed to jobs. The actual level of activity for the year was 25800 machine hours. Manufacturing overheads are closed off against cost of goods sold. Sales for the year amounted to R1 147000