During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (9 $54 per unit) $ 1,216,966 $ 1,856,696 Cost of goods sold [611 $46 per unit) 756,966 1,159,699 Gross margin 456,966 696,696 Selling and administrative expenses* 364,966 334,696 Net operating income 1: 152,966 6 352,696 ' $3 per unit variabie; $241000 xed each year. The company's $40 unit product cost is computed as follows: Direct materials $ 16 Direct labor 9 Variable manufacturing overhead 3 Fixed manufacturing overhead ($432,669 + 24,969 units)- 16 Absorption costing unit product cost $ Forty percent ofxed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 24,969 24,669 Units sold 19,999 29,999 | Required: I. 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 gures 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 25 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 (loss) 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 Variable costing net operating income (loss) Absorption costing net operating income