Easton Pump Companys planned production for the year just ended was 18,300 units. This production level was achieved, and 20,800 units were sold. Other data follow:

Direct material used	$	563,640
Direct labor incurred		285,480
Fixed manufacturing overhead		402,600
Variable manufacturing overhead		177,510
Fixed selling and administrative expenses		301,950
Variable selling and administrative expenses		92,415
Finished-goods inventory, January 1		3,100	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. 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. 2-a. Which costing method, absorption or variable costing, would show a higher operating income for the year?

3. 2-b. By what amount? (Do not round intermediate calculations.)