. ITEMS 12 and 13 ARE BASED ON THE FOLLOWING INFORMATION: Selected information concerning the operations of Prima Donna Company for the year ended December 31, 2019, is available as follows: 10,000 Units produced 9,000 Units sold P40,000 Direct materials used 20,000 Direct labor cost incurred 25,000 Fixed factory overhead 12,000 Variable factory overhead 30,000 Fixed selling and administrative expenses 4,500 Variable selling and administrative expenses None Finished goods inventory, January 1, 2018 There were no work-in-process inventories at the beginning and end of 2019. 12. What would be Prima Donna's finished goods inventory cost at December 31, 2019, under the variable (direct) costing method? C. P8,000 a. P7,200 d. P9,700 b. P7,650 13. Which costing method, absorption or variable, would show a higher operating income for 2019 and by what amount? Amount Costing method P2,500 Absorption costing P2,500 b. Variable costing P5,500 Absorption costing P5,500 Variable costing badut