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 201 follow: The budgeted per-unit 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 $9.30 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 201 beginning finished-goods inventory for absorption costing purposes was valued at the 200 budgeted unit manufacturing cost, which was the same as the 201 budgeted unit manufacturing cost. There are no work-in-process inventories at either the beginning or the end of the year. The planned and actual unit selling price for 201 was $71.50 per unit. Required: Was Outback's 201 operating income higher under absorption costing or variable costing? Also, compute the following: 1. The value of Outback Corporation's 201 ending finished-goods inventory under absorption costing. 2. The value of Outback Corporation's 201 ending finished-goods inventory under variable costing. 3. The difference between Outback Corporation's 201 reported operating income calculated under absorption costing and calculated under variable costing. Complete this question by entering your answers in the tabs below. Was Outback's 201 operating income higher under absorption costing or variable costing? It was higher under variable costing. It was higher under absorption costing