Outback Corporation manufactures tactical LED flashlights in Brisbane, Australia. The firm uses an absorption costing system for internal reporting purposes; however. the company is considering using variable costing. Data regarding Outback's planned and actual operations for 20x1 follow: Budgeted Costs Per Unit Total Actual Costs Direct material $ 12.69 $1,663,289 $1,549,899 Direct labor 9.79 1,239,499 1,193,199 Variable manutacturing overhead 4.99 646,889 682,799 Fixed manufacturing overhead 4.99 646,889 655,899 Variable selling expenses 7.59 998,889 855,898 Fixed selling expenses 8.19 1,869,289 1,869,299 Variable administrative expenses 2.88 369,689 319,288 Fixed administrative expenses 2.19 2??,289 284,299 Total $ 52.99 $6,943,289 $6,529,899 Planned Activity Actual Activity Beginning finishedgoods inventory in units 45,889 45,889 Sales in units 132,898 114,888 Production in units 132,898 123,889 The budgeted perunit cost figures were based on Outback producing and selling 132,000 units in 20x1. Outback uses a predetermined overhead rate for applying manufacturing overhead to its product. A total manufacturing overhead rate of $9.80 per unit was employed for absorption costing purposes in 20x1. Any overapplied or underapplied manufacturing overhead is closed to the Cost of Goods Sold account at the end of the year. The 20x1 beginning nishedegoods inventory for absorption costing purposes was valued at the 20x0 budgeted unit manufacturing cost. which was the same as the 20x1 budgeted unit manufacturing cost. There are no workin-process inventories at either the beginning or the end of the year. The planned and actual unit selling price for 20x1 was $70.40 per unit