Altoona Valve Company's planned production for the year just ended was 18,800 units. This production level was achieved, and 21,900 units were sold. Other data follow:

Direct material used.................................................$580,920

Direct labor incurred..............................................................278,240

Fixed manufacturing overhead..............................................407,960

Variable manufacturing overhead.........................................176,720

Fixed selling and administrative expenses..............................323,360

Variable selling and administrative expenses........................113,740

Finished-goods inventory, January 1..................................4,000units

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 Company's finished-goods inventory cost on December 31 under the variable-costing method? (Do not round your intermediate calculations.)

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

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