Altoona Valve Companys planned production for the year just ended was 18,300 units. This production level was achieved, and 20,500 units were sold. Other data follow:

Direct material used	$	549,000
Direct labor incurred		287,310
Fixed manufacturing overhead		373,320
Variable manufacturing overhead		177,510
Fixed selling and administrative expenses		307,440
Variable selling and administrative expenses		92,415
Finished-goods inventory, January 1		3,100	units

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 Altoona Valve Companys finished-goods inventory cost on December 31 under the variable-costing method? (Do not round your intermediate calculations.)
	Finished-goods inventory cost

2-a.	Which costing method, absorption or variable costing, would show a higher operating income for the year?
	Variable costing Absorption costing

2-b.	By what amount? (Do not round your intermediate calculations.)

Difference in reported income