Exercise 8-23 Absorption and Variable Costing (LO 8-1, 8-4) Pandora Pillow Company's planned production for the year just ended was 22,300 units. This production level was achieved, but only 18,300 units were sold. Other data follow: The cost per unit remained the same in the current year as in the previous year. There were no work-in-process inventorles at the beginning or end of the year. Required: 1. What would be Pandora Pillow 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.)