During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows Sales ( 364 per unit) Cost of goods cold ( 537 per unit) Gross margin Selling and administrative expenses Not operating Incone Year $1,216,000 703,000 513,000 302,000 $ 211.000 Year 2 $1,856,000 1,073,000 783,000 332,000 s 451,000 $3 per unit variable: $245,000 fixed each year. The company's $37 unit product cost is computed as follows: 13 Direct materials Direct labor Variable manufacturing overhead Tixed manufacturing overhead (200,000 - 24.000 units) Absorption costing unit product cost 12 $17 Forty percent of fixed 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 Units produced Units told rear 24,000 19.000 Year 24,000 39,000 Production and cost data for the first two years of operations are: 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 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 Neur Required 2 > 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 Requited 3 What is the variable costing net operating income in Year 1 and in Year 27 (Loss amounts should be indicated with a minus sign) Year 1 Year 2 Net operating income (los) 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. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Variable costing net operating income (loss) Absorption costing not operating income