Easton Pump Companys planned production for the year just ended was 19,400 units. This production level was achieved, and 21,600 units were sold. Other data follow:

Direct material used	$	589,760
Direct labor incurred		294,880
Fixed manufacturing overhead		422,920
Variable manufacturing overhead		205,640
Fixed selling and administrative expenses		349,200
Variable selling and administrative expenses		113,490
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.)