A manufacturing company employs variable costing for internal reporting and analysis purposes. However, it converts its records to absorption costing for external reporting. The Accounting Department always reconciles the two operating income figures to assure that no errors have occurred in the conversion. Financial data for the year are presented below. The fixed manufacturing overhead cost per unit was based on the planned level of production of 480,000 units.

Budgeted and Actual Levels for Sales and Production
	Budget	Actual
Sales (in units)	495,000	510,000
Production (in units)	480,000	500,000
Standard Unit Manufacturing Costs
	Variable Costing	Absorption Costing
Variable Costs	P10.00	P10.00
Fixed manufacturing overhead	0	6.00
Total unit manufacturing costs	P10.00	P16.00

The difference between the operating income calculated under the variable costing method and the operating income calculated under the absorption costing method would be

1. P57,600
2. P60,000
3. P90,000
4. P120,000