During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (e $60 per unit) Cost of goods sold ($43 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 Year 2 $ 1,140,000 $ 1,740,000 817,000 1,247,000 323,000 493,000 305,000 335,000 $ 18,000 $ 158,000 *$3 per unit variable: $248,000 fixed each year. The company's $43 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead (5456,000 - 24,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: $ 8 12 4 19 $43 Units produced Units sold Year 1 24,000 19,000 Year 2 24,000 29,000 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