Exercise 8-22 Absorption and Variable Costing (LO 8-1, 8-4) Easton Pump Company's planned production for the yearjust ended was 18,400 units. This production level was achieved, and 21,700 units were sold. Other data follow: Direct material used $544,640 Direct labor incurred 285,200 Fixed manufacturing overhead 393,760 Variable manufacturing overhead 202,400 Fixed selling and administrative expenses 303,600 Variable selling and administrative expenses 92,920 Finishedgoods inventory, January 1 4,000 units The cost per unit remained the same in the current year as in the previous year. There were no workinprocess 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? (00 not round intermediate calculations.) 2-a. Which costing method, absorption or variable costing, would show a higher operating income forthe year? 2-b. By what amount? (Do not round intermediate calculations.) 1. Finishedgoods inventory cost 2a. Higher operating income method 2b. Difference in reported income