Outback, Ltd., manufactures tactical LED flashlights in Melbourne, Australia. The firm uses an absorption-costing system for internal reporting purposes; however, the company is considering using variable costing. Data regarding planned and actual operations for 20x4 follow:Budgeted CostsPer UnitTotalActual CostsDirect material$12.40$1,698,800$1,587,200D irect labor9.701,328,9001,241,600Variable manufacturing overhead5.10698,700652,800Fixed manufacturing overhead4.10561,700570,700Variable selling expenses7.601,041,200919,600Fixed selling expenses7.10972,700972,700Variable administrative expenses3.00411,000363,000Fixed administrative expenses2.60356,200362,200Total$51. 60$7,069,200$6,669,800Planned ActivityActual ActivitySales in units137,000121,000Production in units137,000128,000Beginning finished-goods inventory in units43,00043,000The budgeted per-unit cost figures were based on the company producing and selling 137,000 units in 20x4. Outback uses a predetermined overhead rate for applying manufacturing overhead to its product. A total manufacturing overhead rate of $9.20 per unit was employed for absorption costing purposes in 20x4. Any overapplied or underapplied manufacturing overhead is closed to the Cost of Goods Sold account at the end of the year. The 20x4 beginning finished-goods inventory for absorption costing purposes was valued at the 20x3 budgeted unit manufacturing cost, which was the same as the 20x4 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 20x4 was $70.90 per unit.1. Compute the value of Outback's 20x4 ending finished-goods inventory under absorption costing.(Do not round intermediate calculations.)2. Compute the value of Outback's 20x4 ending finished-goods inventory under variable costing. (Do not round intermediate calculations.)3. Compute the difference between Outback's 20x4 reported operating income calculated under absorption costing and calculated under variable costing. (Do not round intermediate calculations.)