During Heaton Company's first two years of operations, it reported absorption costing net operating Income as follows: Sales (@ $54 per unit) cost of goods sold (@ $32 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 Year 2 $ 1,216,000 $ 1,856,000 608,000 928,000 608,000 928,000 303,000 333,000 $ 305,000 $ 595,000 *$3 per unit variable: $246,000 fixed each year. The company's $32 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($360,000 + 24,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: $.6 9 2 15 $ 32 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