Easton Pump Company's planned production for the year just ended was 19,400 units. This production level was achieved, and 21,300 units were sold. Other data follow: Direct material used $566, 480 Direct labor incurred 273, 540 Fixed manufacturing overhead 401, 580 Variable manufacturing overhead 213, 400 Fixed selling and administrative expenses 349, 200 Variable selling and administrative expenses 88, 270 Finished goods inventory, January 1 2,700 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 Company's 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.) 1. Finished-goods inventory cost 2-a Higher operating income method 2-b. Difference in reported income