Coronado Company produced 10,100 units during the past year but sold only 8,400 of the units. The following additional information is also available: Direct materials used $81,810 

Direct labour incurred 36,360 

Variable manufacturing overhead 21,210 

Fixed manufacturing overhead 44,945 

Fixed selling and administrative expenses 68,900 

Variable selling and administrative expenses 10,100 

There was no work in process inventory at the beginning of the year. Coronado did not have any beginning finished goods inventory either. 

Required

1. Calculate Coronado Company's finished goods inventory cost on December 31 under variable costing. 
2. Determine which costing method absorption or variable would show a higher net income for the year. By what amount is net income higher by?