2 0.75 points During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales ( $61 per unit) Year 1 $ Year 2 915,000 $ 1,525,000 Cost of goods sold ( $36 per unit) Gross margin 540,000 900,000 375,000 625,000 Selling and administrative expenses* 290,000 320,000 03.56.13 Net operating incone $ 85,000 $ 305,000 eBook *$3 per unit variable: $245,000 fixed each year. The company's $36 unit product cost is computed as follows: Direct labor Pet Direct materials Variable manufacturing overhead 12 References Fixed manufacturing overhead ($240,000 20,000 units) Absorption costing unit product cost 36 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: Units produced Units sold Year 1 20,000 15,000 Year 2 20,000 25,000 Mc 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. Graw < Prev 2 of 4 Next > Check my w Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 27 (Loss amounts should be indicated with a minus sign.) Year 1 Year 2 Net operating income Does) 6,000 $376,000 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 Variabis costing net operating income (loss) Absorption costing net operating income Required 2 Required Year 1 Year 2