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) Cost of goods sold $34 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,216,000 $ 1,856,000 986,000 870,000 308,00338,9e 532,000 646,000 570,000 $3 per unit variable; $251,000 fixed each year The company's $34 unit product cost is computed as follows Directmaterials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($384,ee0 24,000 units) Absorption costing unit product cost 16 34 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges orn production equipment and buildings. Production and cost data for the first two years of operations are: Units produced Units sold Year 1 24,000 19,000 Year 2 24,ee0 29,000 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