During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (863 per unit) cost of goods sold ( 828 per unit) Gross margin Selling and administrative expenses Net operating income Year 2 $1,701,000 756,000 Year 1 $1,071,000 476,000 595,000 945,000 304,000 334,000 291,000 611,000 $3 per unit variable: $253,000 fixed each year. The company's $28 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (0242,000 22,000 unite). Absorption costing unit product cost Production and cost data for the first two years of operations are: Units produced Units sold Year 1 Year 2 22,000 17,000 22,000 27,000 53:03:04 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, Complete this question by entering your answers in the tabs below. Book Print erences Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign.) Year 1 Year 2 Net operating income (loss) Units produced 22,000 22,000 Units sold 17,000 27,000 2:51 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 ces Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Variable costing net operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Less: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income < Required 2 Required 3>