During Heaton Company$$s first two years of operations, it reported absorption costing net operating income as follows:

Year $1$ Year $2$

Sales $($@ $$64$ per unit$)$ $ $1,152,000$ $ $1,792,000$

Cost of goods sold $($@ $$44$ per unit$)792,0001,232,000$

Gross margin $360,000560,000$

Selling and administrative expenses$*301,000331,000$

Net operating income $ $59,000$ $ $229,000$

$*$ $$3$ per unit variable; $$247,000$ fixed each year.

The company$$s $$44$ unit product cost is computed as follows:

Direct materials $ $8$

Direct labor $12$

Variable manufacturing overhead $5$

Fixed manufacturing overhead $($$$437,000-$: $23,000$ units$)19$

Absorption costing unit product cost $ $44$

Production and cost data for the first two years of operations are:

Year $1$ Year $2$

Units produced $23,00023,000$

Units sold $18,00028,000$

Required:

Using variable costing, what is the unit product cost for both years?

What is the variable costing net operating income in Year $1$ and in Year $2?$

Reconcile the absorption costing and the variable costing net operating income figures for each year.