During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales ( 561 per unit) Cost of goods sold ($34 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 Year 2 $ 1,037,000 $1,647,008 578,000 918,000 459,000 729,000 296,000 326,000 $ 163,000 $ 403,000 *$3 per unit variable: $245,000 fixed each year The company's $34 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (5264,000 - 22,000 units) Absorption costing unit product cost 56 12 4 12 $ 34 Production and cost data for the first two years of operations are: Units produced Units sold Year 1 22,000 17,000 Year 2 22,000 27.000 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 Using variable conting, what is the unit product cost for both Years