During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: $ nts Sales (@ $62 per unit) Cost of goods sold (e $40 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1.178.00 760, cae 418,000 312.000 $ \106, Year 2 1.798. eee 1,160.000 638, see 342, eee 296,000 Skipped $ *$3 per unit variable: $255,000 fixed each year, eBook The company's $40 unit product cost is computed as follows: Print $ 9 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($360,880 + 24,800 units) Absorption costing unit product cost 15 References 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 operatons are: Units produced Units sold Year 1 24,000 19. eee Year 2 24,000 29. eee 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. 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 Complete this question by entering your answers in the tabs below. this question by entorima veur animats 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? Year 1 Year 2 Net operating income (loss) Required 1 Required 3 > 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 Variable costing net operating income (loss) Year 2 Absorption costing net operating income