Exercise 8-22 Absorption and Variable Costing (LO 8-1, 8-4) Easton Pump Company's planned production for the year just ended was 18,800 units. This production level was achieved, and 21.400 units were sold. Other data follow: Direct material used Direct labor incurred Pixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses Variable selling and administrative expenses Finished-goods inventory, January 1 $573,400 283,880 411,720 182,360 342,160 109,980 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. 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 2-a. Higher operating income method 2. Difference in reported income