Altoona Valve Companys planned production for the year just ended was 18,200 units. This production level was achieved, and 21,900 units were sold. Other data follow:

Direct material used	$	533,260
Direct labor incurred		283,920
Fixed manufacturing overhead		369,460
Variable manufacturing overhead		191,100
Fixed selling and administrative expenses		322,140
Variable selling and administrative expenses		106,470
Finished-goods inventory, January 1		4,500	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.)
	Which costing method, absorption or variable costing, would show a higher operating income for the year? By what amount?