Easton Pump Company's planned production for the year just ended was $20,000$ units. This production level was achieved, and $21,000$ units were sold. Other data follow:

$\backslash$table$[[$Direct material used...$],[$Direct labor incurred....................,$300,000],[$Fixed manufacturing overhead $.......,420,000],[$Variable manufacturing overhead......................,$200,000],[$Fixed selling and administrative expenses.........,$350,000],[$Variable selling and administrative expenses...,$105,000],[$Finished$-$goods inventory, January $1...,2,000$ units$]]$

The cost per unit remained the same in the current year as in the previous year. There were no work$-$inprocess inventories at the beginning or end of the year.

Required:

What would be Easton Pump Company's finished$-$goods inventory cost on December $31$ under the variable$-$costing method?

Which costing method, absorption or variable costing, would show a higher operating income for the year? By what amount?