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During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@562 per unit) Coat of goods sold

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During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@562 per unit) Coat of goods sold (@ $34 per unit) Gross margin Selling and administrative expenses Net operating income Year Year 2 $ 992.000 $ 1,612,000 544,000 884,000 448,000 728,000 302,000 332,000 $ 146,000 $ 396,000 $3 per unit variable: $254,000 fixed each year The company's $34 unit product cost is computed as follows: es Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 15315.000 21.000 units) Absorption conting unit product cost 15 934 Production and cost data for the first two years of operations are: Units produced Units sold Year 2 21,000 16,000 Year 2 23.000 26.000 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. Complete this question by entering your answers in the tabs below. 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 Required 2 > De puon costing and the variable costing net operating income figures for each year. as 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 sign.) Year 1 Year 2 Net operating income (los) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Vanable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income

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