compute the following:

1. The value of Outback Corporation’s 2019 ending finished-goods inventory under absorption costing.
2. The value of Outback Corporation’s 2019 ending finished-goods inventory under variable costing.
3. The difference between Outback Corporation’s 2019 reported operating income calculated under absorption costing and calculated under variable costing.

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ABC Corporation employs an absorption costing system for internal reporting purposes; however, the company is considering using variable costing. Data regarding ABC's planned and actual operations for the 1 calendar year are presented below. Beginning finished goods inventory in units Sales in units Planned Activity 35.000 140,000 140,000 Actual Activity 35,000 125,000 130,000 Production in units The planned per unit cost figures shown in the next schedule were based on the estimated production and sale of 140,000 units in 2019. ABC uses a predetermined manufacturing overhead rate for applying manufacturing overhead to its product. Thus, a combined manufacturing overhead rate of P9.00 per unit was employed for absorption costing purposes in 2019. Any over- or under-applied manufacturing overhead is closed to the cost of goods sold account at the end of the reporting year. Direct materials Planned Cost Per Unit Total P12.00 P1,680,000 Incurred Costs P1,560,000 ABC Corporation employs an absorption costing system for internal reporting purposes; however, the company is considering using variable costing. Data regarding ABC's planned and actual operations for the 1 calendar year are presented below. Beginning finished goods inventory in units Sales in units Planned Activity 35.000 140,000 140,000 Actual Activity 35,000 125,000 130,000 Production in units The planned per unit cost figures shown in the next schedule were based on the estimated production and sale of 140,000 units in 2019. ABC uses a predetermined manufacturing overhead rate for applying manufacturing overhead to its product. Thus, a combined manufacturing overhead rate of P9.00 per unit was employed for absorption costing purposes in 2019. Any over- or under-applied manufacturing overhead is closed to the cost of goods sold account at the end of the reporting year. Direct materials Planned Cost Per Unit Total P12.00 P1,680,000 Incurred Costs P1,560,000