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Direct material used	$	539,380
Direct labor incurred		280,550
Fixed manufacturing overhead		392,770
Variable manufacturing overhead		168,330
Fixed selling and administrative expenses		322,180
Variable selling and administrative expenses		82,355
Finished-goods inventory, January 1		3,400	units

Easton Pump Company's planned production for the year just ended was 18,100 units. This production level was achieved, and 20,900 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 $539,380 280,550 392,770 168,330 322,180 82,355 3,400 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 Company's 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.) 1. Finished-goods inventory cost Higher operating income method 4 Difference in reported income

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