Consider the following information pertaining to a year's operation of Blair Company: (Click the icon to view Blair Company's operations.) Requirements 1. What is the ending finished-goods inventory cost under variable costing? 2. What is the ending finished-goods inventory cost under absorption costing? 3. Would operating income be higher or lower under variable costing? By how much? Why? (Answer: $705 lower, but explain why.) Data table Units produced Units sold 2,100 - able costing? What is the ending finished-goods in 1,785 Direct labor 6 3,800 Direct materials used $ 3,600 Selling and administrative expenses (all fixed) S 1,100 Fixed manufacturing overhead S 4,700 Variable manufacturing overhead 2,400 All beginning inventories $ 0 Gross margin (gross profit) Direct-materials inventory, end Work-in-process inventory, end 10 2,500 S 420 6 0 Print Done