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

$$3$ per unit variable; $$255,000$ fixed each year.

The company's $$37$ unit product cost is computed as follows:

Production and cost data for the first two years of operations are:Reconcile the absorption costing and the variable costing net operating income figures for each year.

Note: Enter any losses or deductions as a negative value.