6 Safari File Edit View History Bookmarks Wigwgirmg? @, as aw... Sat 5:27PM Q 0 =_ E\" i ii m' l ' ' H ' ' eztomheducationcom C L" V ' ' 0'\" V ' Scree E Week 6 Exercises 0 Saved Help Save G Exit Submit 2021-10u.4F 8.33 Pandora Pillow Company's planned production for the yearjust ended was 21,700 units. This production level was achieved, but only points 20,000 units were sold. Other data follow: Exercise 8-23 Absorption and Variable Costing (LO 8-1, 8-4) Direct material used $642,320 Direct labor incurred 329,840 Fixed manufacturing overhead 451,360 95\"" Variable manufacturing overhead 236,530 Fixed selling and administrative expenses 381,920 Print variable selling and administrative expenses 126,945 Finishedgoods inventory, January 1 None References The cost per unit remained the same in the current year as in the previous year. There were no work~in-process inventories at the beginning or end of the year. Required: 1. What would be Pandora Pillow Company's nished-goods inventory cost on December 31 under the variablecosting method? (Do not round intermediate calculations.) 2-a. Which costing method, absorption or variable costing, would show a higher operating income for the year? 2-b. By what amount? (Do not round Intermediate calculations.) Finished-goods inventory oost 2-a. Higher operating income method 2-b. Differenoe in reported income