During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $64 per unit) Cost of goods sold(@ $37 per unit) Gross margin Selling and administrative expenses Net operating income S 1,152,000 1,792,000 1,036,000 756,000 666.000 486,000 300,000330,000 $188,000 426,000 $3 per unit variable; $246,000 fixed each year The company's $37 unit product cost is computed as follows: Direct matenials Direct labor Variable manufacturing overhead Fuxed manufacturing overhead ($414,000-23,000 units) Absorption costing unit product cost $ 7 18 S 37 Forty percent of fixed production equipment and buildings manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on Production and cost data for the first two years of operations are: Year 1 Year 2 23,000 23,000 Units produced Assignment Print View htp-l/iento mhedacation.com/hm.tpx hodocl 5SinglePrint View&singleQuestionNow 12.Ap. Units sold 18,000 28.000 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 2Required 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 (loss)