11 Problem 7-19 (Algo) Variable Costing Income Statement; Reconciliation (LO,7-1, LO7-2, L07-3] 8.33 points During Heaton Company's first two years of operations, it reported absorption costing net operating Income as follows: Sales (@$68 per unit) Cost of goods sold (@$37 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1,149,880 703,880 437,620 312,080 $ 125,880 Year 2 $ 1,740,eee 1,073, cee 667,eee 342.600 $ 325,000 eBook Print - $3 per unit variable: $255,000 fixed each year. The company's $37 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($384,888 = 24,889 units) Absorption costing unit product cost 12 1 16 $ 37 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 24.ee 24.eee Units sold 19.080 29,eee Required: 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 Using variable costing, what is the unit product cost for both years? Init nmdurt most