Altoona Valve Company's planned production for the year just ended was 20,000 units. This production level was achieved, and 21,000 units were sold. Other data follow: Direct Material used $300,000 Direct labor incurred $150,000 Fixed manufacturing overhead $210,000 Variable manufacturing overhead $100,000 Fixed selling and administrative expenses $175,000 Variable selling and administrative expenses $52,500 Finished goods inventory, January 1 2,000 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 beg. of the year. 1. What would be Altoona's finished-goods inventory cost on Dec 31 under the variable costing method? 2. Which costing method, absorption or variable costing, would show a higher operating income for the year? By what amount