During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Salon (@361 per unit) Cost of goods sold (@ $38 per unit) Gros margin Selling and administrative expenses Net operating income Year a Year 2 6.915,000 $1,525,000 570,000 950,000 345,000 $75,000 297,000 327,000 $ 48,000 $ 240,000 *$3 per unit variable: $252,000 fixed each year The company's $38 unit product cost is compiled as follows: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead (0340,000 20,000 unita) Absorption conting unit product cont 17 Production and cost data for the first two years of operations are: Yet 1 Year 2 Units produced 20,000 20,000 Units sold 15,000 25,000 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. 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 product cont Recured Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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 (losa) 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. Year 2 Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income