Pandora Brewing Company's planned production for the year just ended was $21,500$ units. This production level was achieved, but

only $18,900$ units were sold. Other data follow:

Direct material used

Direct labor incurred

Fixed manufacturing overhead

Variable manufacturing overhead

Fixed selling and administrative expenses

Variable selling and administrative expenses

Finished$-$goods inventory, January $1$

None

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:

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

Note: 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?

Note: Do not round intermediate calculations.