Selena Industries manufactures a single product. Variable production costs are P20 and fixed production costs are P150,000. Selena uses a normal activity of 10,000 units to set its standard costs. Selena began the year with no inventory, produced 11,000 units, and sold 10,500 units.

1. What is the Ending inventory under variable costing and absorption costing would be?
2. What is the volume variance under variable costing and absorption costing would be?
3. By how much would the income between the two methods would differ?