During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $61 per unit) $ 1,229,969 $ 1,839,999 Cost of goods sold (@ $34 per unit) 689,999 1,929,999 Gross margin 549,999 819,999 Selling and administrative expenses* 311,969 341,999 Net operating income $ 229,999 $ 469,999 ' $3 per unit variable; $251,000 fixed each year. The company's $34 unit product cost is computed as follows: Direct materials 5 7 Direct labor 11 Variable manufacturing overhead 5 Fixed manufacturing overhead ($275,999 + 25,999 units) 11 Absorption costing unit product cost $ 34 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 25,999 25,699 Units sold 26,966 39,699 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 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus dgnJ During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $61 per unit) $ 1,226,666 $ 1,836,666 Cost of goods sold (@ $34 per unit) 686,666 1,626,666 Gross margin 546,666 816,666 Selling and administrative expenses* 311,666 341,666 Net operating income $ 229,666 $ 469,666 '\" $3 per unit variable; $251,000 fixed each year. The company's $34 unit product cost is computed as follows: Direct materials $ 7 Direct labor 11 Variable manufacturing overhead 5 Fixed manufacturing overhead ($275,666 + 25,666 units) 11 Absorption costing unit product cost $ 34 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 25,666 25,666 Units 501d 26,806 38,696 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. Requned 1 Requned 2 Requhed 3 Variable costing not operating income (loss) Add (deduct) xed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $61 per unit) $ 1,226,666 $ 1,836,666 Cost of goods sold (@ $34 per unit) 686,666 1,626,666 Gross margin 546,666 816,666 Selling and administrative expenses* 311,666 341,666 Net operating income $ 229,666 $ 469,666 * $3 per unit variable; $251,000 fixed each year. The company's $34 unit product cost is computed as follows: Direct materials 5 7 Direct labor 11 Variable manufacturing overhead 5 Fixed manufacturing overhead ($275,666 + 25,666 units) 11 Absorption costing unit product cost $ 34 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 25,666 25,666 Units sold 26,666 36,666 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. Requhed 1 Requned 2 Requhed 3 Using variable costing, what is the unit product cost for both years? Required 2 )