Easton Pump Companys planned production for the year just ended was 18,200 units. This production level was achieved, and 21,800 units were sold. Other data follow:

Direct material used	$	562,380
Direct labor incurred		291,200
Fixed manufacturing overhead		393,120
Variable manufacturing overhead		191,100
Fixed selling and administrative expenses		303,940
Variable selling and administrative expenses		91,910
Finished-goods inventory, January 1		4,500	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.)