During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales ( $64 per unit) Cost of goods sold (e $41 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1,024,000 656,000 368,000 300,000 68,000 Year 2 $ 1,664,000 1,066,000 598,000 330,000 $ 268,000 $3 per unit variable: $252,000 fixed each year, The company's $41 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (5357,000 - 21.000 unita) Absorption costing unit product coat 10 5 17 41 Production and cost data for the first two years of operations are: Units produced Units sold Year 1 21.000 16,000 Year 2 21.000 26,000 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 productos $ 24 Required 2 > Required 1 Requirecta Required 3 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with sign.) Year 1 Year 2 Net operating income (loss) Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income