1 00:14:17 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@ $63 per unit) Cost of goods sold (@ $34 per unit) Gross margin Selling and administrative expenses" Net operating income *$3 per unit variable, $254,000 fixed each year Year 1 $ 1,197,000 646,000) Year 2 $ 1,827,000 986,000 841,000 311,000 341,000 $ 240,000 $ 500,000 551,000 The company's $34 unit product cost is computed as follows: Direct labor Direct materials Variable manufacturing overhead Fixed manufacturing overhead ($384,000 + 24,000 units) Absorption costing unit product cost $ 8 9 1 16 $ 34 Production and cost data for the first two years of operations are Year 1 Year 2 Units produced Units sold Required: 24,000 24,000 19,000 29,000 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What in the ishlatina at nation income in Vand in Vermont should he indicated with minu Variable manufacturing overhead Fixed manufacturing overhead ($384,000 24,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are Units produced 9:13:57 Units sold Required: Year 1 Year 2 24,000 24,000 19,000 29,000 16 $ 34 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Vanable costing net operating income (loss)) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory Absorption costing net operating income < Required 2 Required S Prev 1 of 1 Next