4 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 ( 534 per unit) Gross margin Selling and administrative expenses Not operating income Year 1 $ 1,071,000 578,000 493,000 301,000 $ 192,000 Year 2 $ 1,701,000 918,000 783,000 331,000 $ 452,000 $3 per unit variable: $250,000 fixed each year. The company's $34 unit product cost is computed as follows: $ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($264,000 22,000 units) Absorption costing unit product cost 3 12 Check my work 4 Production and cost data for the first two years of operations are Units produced Date old Tear 1 Tear 2 22,000 22.000 17.000 21.000 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. Recure Required Using variable conting, what is the unit product cost for both years! Utol Required 2 >