Tacloban Industries manufactures a single product. Variable production costs are P20 and fixed production costs are P300,000. Rounder uses a normal activity of 20,000 units to set its standard costs. Rounder began the year with no inventory, produced 22,000 units, and sold 21,000 units. The standard cost of goods sold under variable costing would be A. P735,000 B. P400,000 C. P420,000 D. Some other number.