During Delta Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $63 per unit) $ 1,071,000 $1,701,000 Cost of goods sold (@ $37 per 629,000 999,000 unit) Gross margin 442,000 702,000 Selling and administrative 302,000 332,000 expenses Net operating income $140,000 $370,000 $3 per unit variable; $251,000 fixed each year. The company's $37 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead $7 8 3 Fixed manufacturing overhead ($418,000+ 22,000 units) 19 Absorption costing unit product cost $37 Production and cost data for the first two years of operations are Year 1 Year 2 Units 22,000 22,000 produced Units sold 17,000 27,000 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 eac year. Edit View Insert Format Tools Table 12ptv Paragraph BIUAT