The normal capacity of Amplify Ltd is 700 000 units per annum.

The raw material cost is R440 per unit and direct labour is R500 per unit.

Variable production overheads are R120 per unit and fixed production overheads

incurred amounts to R10 500 000. The closing balance of finished goods is 19

000 units (assume there is no opening balance).

REQUIRED:

Which amount is the correct cost of sales figure if the

actual production was 560 000 units for the year?