During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $60 per unit) $ 1,140,000 $ 1,740,000 Cost of goods sold (@ $43 per unit) Gross margin 817,000 1,247,000 323,000 493,000 Selling and administrative expenses* 307,000 337,000 Net operating income $ 16,000 $ 156,000 * $3 per unit variable; $250,000 fixed each year. The company's $43 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($432,000 24,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Units produced Units sold Year 1 24,000 Year 2 24,000 19,000 29,000 $ 8 13 4 18 $ 43 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 Using variable costing, what is the unit product cost for both years? Unit product cost