Altoona Valve Companys 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		4,000	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 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.)
	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)