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Answers pls Problem 6-19 Variable Costing Income Statement; Reconciliation [LO6-2, LO6-3] During Heaton Company's first two years of operations, it reported absorption costing net operating

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Problem 6-19 Variable Costing Income Statement; Reconciliation [LO6-2, LO6-3] During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows Year Sales ( $63 per unit) Cost of goods sold ( $36 per unit) Gross margin Selling and administrative expenses* Net operating income $ 1,008,0001,638,000 576,000 936,000 702,000 299,000329,000 1133,000 373,000 432,000 $3 per unit variable; $251,000 fixed each year. The company's $36 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead rixed manufacturing overhead ($294,000+21,000 unita) Absorption costing unit product cost 14 $ 36 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.

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