During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Sales ( 562 per unit) $ 992,000 Cost of goods sold ( 532 per unit) 512,000 Gross nargin 480,000 Selling and administrative expenses 295,000 Net operating income $ 185,000 *$3 per unit variable: $247000 fixed each year. The company's $32 unit product cost is computed as follows: Year 2 $ 1,612,000 832,000 780,000 325,000 $ 455,000 $6 + Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($273,000 + 21,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: 4 13 $ 32 Units produced units sold Year 1 21,000 16,000 Year 2 21, 80e 26,000 Required: 1 Using variable costing, what is the unit product cost for both years? Production and cost data for the first two years of operations are: Units produced Units sold Year 1 21,000 16,000 Year 2 21,000 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 ea 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 > 2 5 ion and cost data for the first two years of operations are: Units produced Units sold Year 1 21,000 16,000 Year 2 21,000 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 figure 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 st sign.) Year 1 Year 2 Net operating income (loss) Absorption costing unit product cost $ 32 Production and cost data for the first two years of operations are: Units produced Units sold Year 1 21,000 16,000 Year 2 21,000 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. 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 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Year 2