Easton Pump Companys planned production for the year just ended was 19,500 units. This production level was achieved, and 21,700 units were sold. Other data follow:

Direct material used	$	585,000
Direct labor incurred		276,900
Fixed manufacturing overhead		409,500
Variable manufacturing overhead		204,750
Fixed selling and administrative expenses		323,700
Variable selling and administrative expenses		86,775
Finished-goods inventory, January 1		3,000	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 Easton Pump Companys finished-goods inventory cost on December 31 under the variable-costing method? (Do not round intermediate calculations.)

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

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